By Kate Holton
LONDON (Reuters UK) - Pay-TV group BSkyB launched an appeal Thursday against a competition ruling forcing it to reduce its 17.9 percent stake in free-to-air broadcaster ITV.
Britain's Competition Appeal Tribunal (CAT) said in 2008 that BSkyB would have to cut its holding to below 7.5 percent to prevent a loss of competition in the media sector.
BSkyB had bought the shares in ITV in 2006 for 940 million pounds, or more than 135 pence per share, effectively blocking cable group NTL, now renamed Virgin Media from buying ITV.
BSkyB wants to get the case sent back to the Competition Commission for a fresh investigation, which, if successful, would delay the date by which BSkyB has to sell the stake.
The company's legal team launched their case at the Court of Appeal in London Thursday, telling the hearing they intended to dispute the scope and depth of the review, the standard of proof that the stake would reduce competition and the suggested remedies.
The team also said they intended to question the finding that the purchase affected the level of media plurality in Britain and discuss what would have happened to competition if BSkyB had not bought the stake.
Shares in ITV were trading at 44 pence at 2:35 p.m..
The Court of Appeal hearing is scheduled to last for two days, with a result likely to come at a later date.
(Reporting by Kate Holton, editing by Will Waterman and Elaine Hardcastle)
