11 December 2006
Telecommunications company ntl has announced that it will continue its complaint against BSkyB for its 17.9% acquisition in ITV's shares because "it presents serious competition and public interest issues", despite removing its own bid for the company.
Previously, ntl had put in an offer of £4.7 billion for a merger with ITV, a move that would have placed business tycoon Sir Richard Branson in direct contention with BSkyB's James Murdoch.
Sir Richard became ntl's biggest share holder after he sold Virgin Mobile to the company. Ntl will be re-branded as Virgin Media next year.
On hearing that BSkyB had obtained 17.9% of the shares in the company, ntl argued that by having such a large influence, BSkyB was limiting competition within the industry, limiting consumers' options and providing them with a worse service.
Sir Richard has since heavily criticised BSkyB for damaging "the plurality of the British media".
Ofcom, the industry regulator, has confirmed that it is investigating whether or not BSkyB's stake represents a "change in control" that might affect ITV's programming.
Paul Richards, an analyst at London's Numis Securities, told the Birmingham Post that he believes it is highly unlikely that BSkyB will be forced by regulators to sell its stake in ITV. He views the chances of ntl coming back with another offer as "very slim."
"Ntl has some big hurdles to overcome if it is to bid again,'' he added.
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