BSkyB To Appeal ITV Ruling

LONDON (AP) — British Sky Broadcasting Group PLC said Friday it has been granted permission to appeal a court ruling that would force it to reduce its 17.9 percent stake in television broadcaster ITV because it breaks competition laws.

The company said a hearing on the case will be scheduled by the Court of Appeal "in due course."

BSkyB lost an earlier appeal in a lower court in September, when Britain's Competition Appeal Tribunal upheld the government's February ruling ordering the pay-TV provider to cut its holding to 7.5 percent.

BSkyB, which is controlled by Rupert Murdoch's News Corp., bought its stake in ITV, a public network of British broadcasters set up to compete with the BBC, in November 2006 for around 135 pence per share.

Most analysts believe the move was an attempt to keep the shares out of the hands of rival NTL Inc., and not a straightforward investment.

But it will cost the company if it is forced to sell now, with ITV shares trading at just 21 pence on Friday, up 2.4 percent on the previous day.

BSkyB's shares closed up less than percent at 460.25 pence ($6.63) in London.