British pay-TV giant BSkyB on Thursday lost an appeal over a government order that it reduce its 17.9-percent stake in commercial television network ITV.

Britain's Court of Appeal said that a 2008 ruling that BSkyB cut its shareholding in British broadcaster ITV to 7.5 percent on grounds of competition must stand.

BSkyB, in which the biggest shareholder is Rupert Murdoch's News Corp, said it would "review the judgement" before deciding on any further action.

The British government had ruled agianst BSkyB in January 2008 following a recommendation by competition authorities.

The satellite TV operator, known for its round-the-clock Sky News channel and live coverage of English Premier League football, snapped up 17.9 percent of ITV for 940 million pounds in November 2006.

However, many analysts saw the move as preventing an ITV tie-up with BSkyB's fierce rival Virgin Media.