Satellite broadcaster British Sky Broadcasting PLC was ordered by the Britain's Competition Commission to reduce its 18 percent shareholding in ITV to below 7.5 percent and not take a seat on the company's board, Business Secretary John Hutton announced on Tuesday.

If this decision will be implemented, Sky will lose over 250 million pounds (US$500 million) after the company's share price went down. Sky has until Feb. 25 to lodge an appeal and said it will do so.

The company’s purchase of ITV shares was widely seen by analysts as a blocking maneuver to keep the shares out of the hands of rival NTL Inc., now called Virgin Media after a buyout by Richard Branson's Virgin Mobile.

Independent Television, generally known as ITV, is a public network of British broadcasters, set up under the Independent Television Authority (ITA) to compete with the BBC. ITV is the oldest commercial television network in the UK.

After BSkyB's move, NTL said it was in talks with ITV about an offer and that the recommendation was well received. Its shares opened up 0.8 percent at 72 pence (US1.43) and climbed 2.6% to 73.9 pence - well below the 135 pence a share that BSkyB paid when it built the stake.

Sky shares traded 0.75 percent higher at 535 pence (US$10.62).