French-US media giant Vivendi Universal looks set to sever its ties with satellite broadcaster BSkyB after placing a block of shares held by its bankers on the market.
Deutsche Bank, which took custody of 400 million BSkyB shares in a swap with Vivendi late last year, was seeking buyers for 250.6 million shares, worth £1.7 billion sterling at the current BSkyB price.
Vivendi's motive for the sale was not clear but the group said it had "consented to unwind the remainder of its BSkyB transaction" and would issue a press release in due course. It gave no further details.
Vivendi shares rose 5.4 per cent to €31.47 this morning.
Vivendi entered into the swap to meet a European Union demand for its 2000 merger with Seagram. At the time of the swap, Vivendi retained financial exposure to its 400 million shares, or 23 per cent stake, in BSkyB, Vivendi said last year.
BSkyB shares were down 1.8 per cent to 670p this morning having hit an eleven-week market low of 640p.
The shares have fallen from 760p since the end of last week, hurt by the sale of 9.5 million BSkyB shares by BT Group on Friday, after a lock-up period ended.