NTL says it is "considering all of its options" following the news that ITV was rejecting its merger approach.
But that hasn't stopped the cable operator and its newish stakeholder Richard Branson from further dissing BSkyB following their surprise purchase of a 17.9% stake in ITV last week, a move seen by many as an attempt by the satellite broadcaster to block any merger between ITV and the cable company - a merger which would create a commercial TV giant, in UK terms, and a formidable competitor to the Murdoch's British Sky Broadcasting.
In a statement NTL has said that the share purchase gave BSkyB a "material influence over ITV, Freeview and the UK media", adding that "regardless of public statements by BSkyB, its holdings in ITV will reduce competition and raise plurality concerns in the UK media market. This is clearly not in the public interest". That follows comments from Branson at the weekend when the Virgin mogul said he would ask the Office Of Fair Trading, OfCom and possibly the European Commission to investigate the share purchase on the grounds that it may have contravened UK broadcasting or, more likely, competition rules.
Whether the BSkyB purchase actually had any bearing on the subsequent rebuttal of NTL's merger proposal by ITV isn't clear, though Branson said yesterday: "I cannot comment for NTL or what the company may do, but speaking personally, I fully expected ITV to announce this [the rebuttal] soon after BSkyB made its share purchase on Friday. It appears that this share purchase has already had a material influence on the company and damaged the plurality of the British media. ITV has closed the door on NTL without even seeking to discuss the strategic merits of a combination with NTL. It appears that ITV now has an 800lb gorilla in its midst".
But ITV is sure to dismiss any accusations that the BSkyB share purchase influenced its position on the possibility of a merger with NTL - pointing out that BSkyB have said they will not be looking for a board position at the commercial broadcaster as part of their share purchase.