Branson considering BSkyB challenge
Richard Branson is considering challenging BSkyB’s £940m (€1.4bn) investment in ITV, it was reported today.
Rupert Murdoch’s satellite firm announced on Friday it had acquired a 17.9% stake in the commercial station, which it described as one of Europe’s premier TV businesses with substantial long-term potential.
But, according to the Sunday Times, Sir Richard, the biggest shareholder in cable operator NTL, is furious the satellite broadcaster has tried to scupper NTL’s £5bn (€7.4bn) bid for the firm.
He is reportedly looking to take the matter to the Office of Fair Trading and European Commission. The newspaper says the entrepreneur believes BSkyB’s action is an attempt to reduce competition in the UK television market place.
Meanwhile, The Mail on Sunday has reported industry regulator Ofcom is set to look at the transaction tomorrow, although it is thought unlikely to take any action to block the move.
Cable network NTL expressed an interest in ITV earlier this month although it is yet to table a formal bid, while Five owner RTL is also reportedly lining up a £5bn (€7.4bn) offer for the firm.
ITV is currently in a weak position after the departure of chief executive Charles Allen and a disappointing trading performance.
Analysts suggested the BSkyB move, which makes it ITV’s biggest shareholder, was probably designed to keep a check on its rivals.
NTL completed the £962.4m (€1.4bn) takeover of Virgin Mobile in July, which brought together NTL's 5.1 million cable customers and 4.3 million users of Virgin Mobile phones. It plans to change its name to Virgin Media early next year to take advantage of the Virgin brand.
