The pay-TV group BSkyB says it has sold a 10% stake in rival broadcaster ITV - more than half of the shares it owned.The sale of the stake, which is worth £ 196m ($ 305m), will end a long-running battle over its legal investment.
Morgan Stanley said on Monday it was acting as bookrunner in the placing. BSkyB will keep 7.5% of shares in ITV
That is the maximum level allowed by the British competition authorities. BSkyB bought the shares in 2006, paying £ 960m for it.
The matter was referred to the Competition Commission in 2007, and in 2008 was ordered BSkyB to cut its stake to below 7.5%.
It said the stake gave undue influence the company in the UK media and it was therefore not in the public interest.
'Threat to Democracy'
BSkyB's original investment sparked a fierce public row between The company, led by its then-chief executive James Murdoch and Virgin Media's largest shareholders, the entrepreneur Richard Branson.
Mr Branson accused the Murdoch media empire of being a "threat to democracy" while politicians therefore questioned the move.
BSkyB has fought hard to keep hold of the shares, going through a series of court appearances - which it lost.
Its last chance was to go to the Court of Appeal - a move which was told it would be unlikely to result in success.
In a statement the company said: "Sky intends to retain 7.5% of its residual investment in ITV for the medium term and to remain a committed shareholder of ITV"
ITV shares closed down 2.3% at 51.3 pence before the announcement. BSkyB, which bought the ITV shares priced at 135 pence, itself closed flat.
ITV recently ended its long-running search for a chief executive, Adam Crozier attracting from his post as head of the Post Office.
He joins another heavy-hitting management figure, Archie Norman, now chairman of ITV His past positions include being a Conservative MP and the boss of supermarket giant Asda.
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