Branson hits out at Murdoch

Richard Branson has launched a fresh attack on rival Rupert Murdoch after his bid to merge NTL with ITV was rejected by the commercial…

Richard Branson has launched a fresh attack on rival Rupert Murdoch after his bid to merge NTL with ITV was rejected by the commercial broadcaster.

The Virgin boss and NTL shareholder said ITV turned down the offer after Mr Murdoch's BSkyB took a 17.9% stake in the company in what he claimed was a "blatant attempt to distort competition".

He said he was "not surprised" by the decision of the ITV board now there was "an 800lb gorilla in its midst".

He called on the competition authorities to intervene and the British government to "stand up" to Mr Murdoch and the dominance of his media empire.

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Mr Branson said: "A week ago there was a lot of warmth from ITV. A week later a rejection. The only thing that's taken place in that last week that's different is Murdoch's acquisition of nearly 20% of the company.

"We believe that because he has become the biggest shareholder in ITV that has changed the scene somewhat - to say the least."

His outburst came after ITV said the proposed merger, which could have been worth around £4.68 billion, "materially" undervalued the company.

ITV said: "Whereas there is obvious appeal to NTL in gaining control of ITV's substantial and successful business, from ITV's perspective there is little, if any, strategic logic for ITV to combine with NTL."

Regulator Ofcom has confirmed it is investigating whether Sky's "represents a change of control" at ITV which could affect its licensed services such as news and current affairs programming.

NTL, which recently bought Telewest and will change its name to Virgin Media next year, said it was "considering all of its options" in the light of ITV's rejection.

PA