BSKYB HIT BY U.K. REGULATOR

The 17.9 percent stake in ITV acquired by British satellite group BSkyB, controlled by Rupert Murdoch's News Corp, could substantially lessen competition in the U.K. television market, Britain's Competition Commission ruled today (Wednesday). As a result of the ruling, BSkyB may be forced to sell its ITV stake, which it acquired last November for $1.9 billion. However, the commission appeared to open the door to the possibility that BSkyB would be allowed to sell merely a portion of its holdings, perhaps less than 10 or 15 percent to decrease its influence in the operation of Britain's leading commercial network.

03/10/2007