BSKYB BUYS OUT BT HOLDING IN OPEN

BSKYB have announced the purchase of the remaining 19.9 percent BT stake in the Open interactive television service in a share deal worth around £380 million.
BSkyB, now the sole shareholder, recently completed the acquisition of HSBC and Matsushita shareholdings in OPen's parent company British Interactive Broadcasting (BiB).
The purchase of the interactive television services provider follows on from BSkyB’s announcement that they were seeking to integrate interactive television services more closely with BSkyB and third party content, leading to greater profit-driven focus on services, entertainment and information.
Following a strategic and efficiency review by BSkyB management, BSkyB are to take an exceptional restructuring charge of £40 million and reduce Sky Interactive’s ongoing cost base.
BT will receive staged payments from BSkyB in tranches over the next two years. The first tranche, consisting of approximately 19.1 million BSkyB shares, will be delivered inside 45 days of signing the deal. As the second tranche, BT will receive BSkyB shares or loan notes with a value of around £120 million, which will be released in 18 months time. A further tranche, in BSkyB shares or loan notes, also to a value of around £120 million, may be paid in 2003 depending on the BiB business reaching a specified valuation.
Under the deal BT will be free to sell up to 50 per cent of the BSkyB shares at any time.
IN May 1997, British Sky Broadcasting, BT, Midland Bank and Matsushita Electric announced the formation of BiB to deliver digital interactive services to UK television viewers. (SP)