ITV: Probe into BSkyB share purchase

BSkyB's purchase of a stake in ITV is to be investigated by broadcasting regulator Ofcom, the Government has said.

In an unprecedented move, Trade and Industry Secretary Alistair Darling told MPs in a written statement that he has asked Ofcom to look into "public interest issues" that may arise from the deal.

In September, BSkyB bought 17.9 per cent of the broadcaster. The deal will also be probed by the Office of Fair Trading, Mr Darling said, and both it and the Ofcom report will be completed by April 27.

This will allow him to make a "properly informed decision on whether the transaction should be referred to the Competition Commission for fuller investigation", he said.

Mr Darling told MPs: "As a general rule, Ministers have withdrawn from the regulatory consideration of mergers.

"However, having given careful consideration to the provisions of the relevant legislation and to the representations I have received, both from the parties directly concerned and from interested third parties, I believe that, in this case, it is appropriate for me to use the mechanism established by the Communications Act 2003 to ask Ofcom to conduct an initial investigation into the public interest issues that may be raised by this transaction."

© Independent Television News Limited 2007. All rights reserved.