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Murdoch sells a 10pc stake in ITV

Tuesday, February 09 06:45:29

Rupert Murdoch-led tv group BSkyB has sold a 10.4pc stake in the British commercial broadcaster ITV for around £ 196m.

The move finally brings an end to a long-running legal battle.

Morgan Stanley acted as bookrunner for the placing, which was intended to cut BSkyB's stake in its fellow British broadcaster to one vote below 7.5 pc, as required by competition authorities.

"Sky intends to retain its residual 7.5 pc investment in ITV for the medium term and to remain a committed shareholder of ITV," BSkyB said in a statement.

BSkyB had bought a 17.9pc stake in ITV in 2006 for £ 940m, or 135 pence per share, effectively blocking cable group NTL, now renamed Virgin Media, from buying ITV and creating a larger and more powerful competitor.

ITV shares closed down 2.3 percent last night at 51 pence, before the placing was announced.

BSkyB closed flat at 524.5p.

BSkyB's original investment sparked a fierce public row between the company and Virgin Media's largest shareholder, British entrepreneur Richard Branson.

Branson accused the Murdoch media empire of being a "threat to democracy" while politicians also questioned the move.

The matter was finally referred to Britain's Competition Commission in 2007 and in 2008 BSkyB was ordered to cut its stake to below 7.5 percent. Since then, it has been through a series of appeals, all of which it lost.

(c) Reuters