Sky Prepares For ITV Ruling

John Hutton, the secretary of state for business, is expected to announce tomorrow that Sky should sell some of its 17.9% stake in ITV.

Since Sky bought the shares in November 2006, ITV's share price has almost halved, meaning the satellite broadcaster could be facing a loss of around £250 million.

Reports at the weekend said that Sky is preparing to appeal against the government should the decision go against it.

A report in the Sunday Telegraph said that if Sky does appeal, it will focus on whether the Competition Commission's finding's were correct and whether the 7.5% ceiling it recommended was appropriate.

Meanwhile, the Mail On Sunday claims that Sky will attempt to claim damages from the government if forced to sell its shares at a loss.

Sky has until the end of February to appeal against the decision at the Competition Appeal Tribunal.

Source: Media Tel