BSkyB falls as Kirch dumps stock

The shares were placed at 10.25p, a 12.2% discount on yesterday's 11.68p closing price, suggesting that Kirch were in need of the money. As a result BSkyB has suffered, falling nearly 4% to 11.22 by 4.30pm today.

The 594.5m of capital raised is to fund Kirch's new marketing strategy “centred on the adoption of a partially subsidised set top box and twelve month contract proposition,” the acquisition of sports rights, and the roll-out of new channels.

Kirch expects to reach operational profitability by 2003.

BSkyB attempted to stem any panic selling with a trading statement saying “the preliminary results announcement on 26 July is in line with management expectations. BSkyB's first quarter results for the period to 30 September are expected to be announced on 3 November 2000.”