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BSkyB ‘could sell ITV stake’

UK satcaster BSkyB could sell its 7.5% stake in terrestrial broadcaster ITV as part of its plans to create a pan-European pay TV business, according to analysts.

Investment bank UBS said the move would free up Sky to purchase Sky Italia and Sky Deutschland from Rupert Murdoch’s 21st Century Fox to create its Sky Europe Service, first mooted last month.

“We argue that there is potential for BSkyB to sell this stake as part of the plan to create Sky Europe,” said UBS analyst Tamsin Garrity in a report.

Sky bought a 17.9% stake in ITV in 2006 to prevent cable operator NTL (now Virgin Media) from taking over the commercial broadcaster. The company then sold a 10.4% stake in February 2010, leaving it with the 7.5% holding.

“It is possible that BSkyB may also transfer the shares to Fox as part of the transaction to acquire its stakes in Sky Deutschland and Sky Italia, which would be taken positively by the market in our view as it could be seen as a strategic holding,” Garrity added.

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