Sky furious at Hutton verdict

As was expected, John Hutton has demanded that Sky reduces the size of its stake in ITV down to less than 7.5 per cent, from the current 17.9 per cent. A statement from the Department for Business read:

‘The Secretary of State has decided to make an adverse public interest finding, taking account of the Competition Commission’s decision that this transaction results in a substantial lessening of competition within the UK market for all television.

‘The Secretary of State has also decided to impose the remedies recommended by the Competition Commission to address the substantial lessening of competition identified in their report: divestment of BSkyB’s shares in ITV down to a level below 7.5 [per cent] and behavioural undertakings from BSkyB requiring the company not to dispose of the shares to an associated person, nor to seek or accept representation on the board of ITV and not to reacquire shares in ITV.’

According to the Telegraph, Sky will be given nine months to offload the shares, rather than the traditional three.

At the time NTL, now Virgin Media, publicly lambasted the £940 million share raid, and called for the Government and the competition regulators to intervene. Last month, the Competition Commission found against Sky and said its 17.9 per cent shareholding was uncompetitive, and called for either a full or partial sale.

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