• The Independent , Wednesday, November 22, 2006 11:30 AM

Richard Branson has accused Britain's ITV of falling under the sway of Rupert Murdoch's BSkyB after the broadcaster rejected a £4.7bn ($8.9 billion) offer to buy the company and dismissed the rationale for a tie-up out of hand.

"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," says Branson, the largest shareholder in NTL. He adds that Sky's move into ITV represents "a threat to democracy".

He goes on to claim that ITV has performed an about-face over talks to merge with NTL's cable, broadband and mobile-phone business since Sky purchased a stake in the television company. "A week ago, there was a lot of warmth from ITV, a week later a rejection," he says. "It appears that the purchase has already had a material influence on the company and damaged the plurality of the British media," Branson adds.

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