bskyb must sell ITV shares

BSkyB must reduce its holding in ITV from the current level of 17.9% to below 7.5% and not take a seat on the ITV board, the government has ruled.

Business Secretary John Hutton accepted the findings of the Competition Commission’s study into BSkyB’s stake.

BSkyB has until Monday 25 February to lodge an appeal against the decision.

ITV said that it warmly welcomed the government’s decision, while BSkyB said it would carefully consider the findings before deciding what to do.

Paper loss

On 17 November 2006, BSkyB announced that it had spent £940m buying 17.9% of ITV, but ITV’s share price has fallen significantly since then.

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HMV shares rise

Shares in HMV rose by as much as 17% after it announced it had a “really cracking Christmas” period.

 Unlike some retailers who have seen shares decrease, the music and book firm said sales in the UK rose as much as 14.1% whilst sales at its Waterstone’s books chain increased by 4%.

 HMV now expected full year profits to be at the top of forecasts.

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