Verdict on BSkyB stake

THE results of a crucial Competition Commission inquiry into BSkyB’s 17.9% holding in ITV is due to be published this week. BSkyB bought the stake last November while cable operator NTL, since rebranded as Virgin Media, attempted a takeover of ITV.

BSkyB’s acquisition of the ITV stake was referred to the commission following recommendations from the Office of Fair Trading and Ofcom, the media regulator. The OFT said BSkyB’s stake posed a risk of a material reduction in strategic competition between the satellite broadcaster and ITV. Ofcom said concentration of news provision was an issue. The commission could order BSkyB, whose largest shareholder is News Corp, ultimate owner of The Sunday Times, to dispose of part or all of its stake.

Activist’s bid for Bionostics

THE activist fund-management group North Atlantic Value, led by Christopher Mills, is poised to launch a takeover bid for Bionostics, valuing the medical diagnostics firm at about £15m.

According to bankers, North Atlantic, which is backed by a group of investors, is planning to bid 30p a share for Bionostics. The offer is a 30% premium to the Bionostics share price of 23p on Friday. The move comes after Bionostics, formerly known as Ferraris Group, said it was in takeover talks in June.

North Atlantic is already Bionostics’ largest shareholder with a 26.76% stake held in four of the funds it manages. Bionostics’ shares have slumped by 85% since hitting 170p in 2004.

The group sold off its cardiac-monitoring assets in June 2006 to Spacelabs Healthcare for £14m. However, in April Bionostics announced it had swung to a £490,000 loss for the first six months of the year against a profit of £536,000 a year earlier.

Hampton to meet Qataris

SIR PHILIP HAMPTON, the chairman of J Sainsbury, is understood to be planning his first meeting with Sheikh Hamad bin Jassim, prime minister of Qatar, the gas-rich nation that is bidding for the supermarket chain.

The meeting is expected to take place in about two weeks and would be the first time that a member of the Sainsbury board had met representatives of Qatar face to face. Until now all negotiations have been conducted with investment bankers and Paul Taylor, the head of Delta Two, the investment group funded by the Qataris.

It is a further sign that the takeover is expected to proceed. Provided the Qataris can reach an agreement with the Sainsbury pension trustees, the deal is expected to gain the backing of the Sainsbury family, who together control about 18% of the business.

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