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BSkyB has, however, little hope of getting the money back from Kirch, which is teetering on the brink of collapse.

Sky was not due to exercise its 22% option, which forces Kirch's Taurus Holdings to buy back Sky's stake in KirchPayTV, until October 2002. However, failure to meet targets and other changed circumstances have allowed Sky to act earlier. KirchPayTV filed for insolvency on May 8, after it ran out of cash.

In a statement, Sky said: "The group believes that it is unlikely to receive a significant amount, if any amount, as a result of its exercise of the put option." The move should give Sky, owned by Rupert Murdoch, a bigger stake in whatever creditors can salvage from the company when it does go bankrupt.

Shares in BSkyB were down by 2.52% when the market opened this morning, trading at 663.8p, or 18p off yesterday's closing price. The satellite broadcaster has been hit as major investors sell off its stock, including BT and, today, Deutsche Bank, as well as the news that the government's draft communications bill contains legislation that could see Sky taxed for using the broadcasting spectrum.

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