Proposals to reduce Sky stake in ITV

Competition Minister Gareth Thomas has published draft statutory undertakings for consultation which, if accepted, would require Sky to divest a proportion of its shares in ITV.
In January 2008, the then Secretary of State for Business and Enterprise, John Hutton, announced that Sky’s shareholding in ITV should be reduced following a Competition Commission ruling that Sky’s acquisition of 17.9% of ITV shares reduced competition.
Following the Secretary of State’s announcement, Sky appealed the decision via the Competition Appeal Tribunal and Court of Appeal. BERR said it is commencing the necessary consultation on these draft undertakings to ensure swift implementation of the remedies should the Secretary of State’s decision be upheld by the Court.

The undertakings would require Sky to reduce shares in ITV to below 7.5%, agree not to sell shares to persons associated with Sky/News Corporation, agree not to seek or accept representation on the ITV Board and agree not to reacquire shares in ITV.