ITV shares fall as BSkyB stake throws doubt on takeover

(Associated Press via NewsEdge) ITV shares fell almost 5% after British Sky Broadcasting Group became the broadcaster's biggest shareholder in a surprise move, dealing a blow to a fledgling takeover attempt.

ITV shares fell 8 euro cents ($0.10) to 1.63 euros ($2.08) in early trading on the London Stock Exchange as investors reacted to BSkyB's announcement that it had acquired a 17.9% stake in the rival broadcaster.

ITV was identified as a takeover target last week by cable company NTL, which plans to change its name to Virgin Media and offer broadband, fixed-line and mobile telecommunications services as well as television.

Virgin Group chairman Sir Richard Branson, whose company owns 10.7% of NTL, called BSkyB's move a 'blatant attempt to distort competition.'

He demanded Britain's Office of Fair Trading investigate and urged regulators to 'stand up to reckless and cynical attempts to stifle competition and secure creeping control of the British media.'

BSkyB dismissed Branson's comments.

BSkyB has said it has no intention of mounting a takeover bid for the rival broadcaster.

ITV said in a statement on Monday that BSkyB confirmed its plans to play a supporting role and work to create value for all shareholders.