ITV could be stuck in limbo for weeks after BSkyB bought a major stake in the ailing broadcaster which is likely to prevent others from making a bid, analysts and lawyers have predicted.
BSkyB said on Friday it had spent £940 million (€1.391 billion) to buy a 17.9 per cent stake in ITV, which has lost viewers, advertisers and its chief executive this year. Most analysts interpreted BSkyB's move as trying to prevent anyone else from making a bid.
It followed news earlier this month that rival NTL had approached ITV about combining the two companies, while commercial broadcaster RTL Group had not ruled out a bid.
A source had previously said NTL was preparing to put forward a bid that would value ITV at 110-130 pence a share. Analysts said that deal would now be much harder to carry out. They also said it could be hard to find a new chief executive while the firm's future was unclear.
Under media ownership rules, BSkyB is prevented from controlling more than 20 per cent of ITV.
Richard Branson, NTL's biggest shareholder, has called for Britain's Office of Fair Trading to force BSkyB to sell its 17.9 per cent stake, arguing it is bad for competition. However BSkyB said its investment did not enable it to exercise a material influence over ITV's operations.
