Sky has still not revealed what it plans to use the cash for, but in a statement the satellite broadcaster said: "The group may use the proceeds of the offering for acquisitions of businesses and/or assets in support of its startegy."
It is understood that the satellite giant is plotting a move into the broadband market to compete with the recently merged NTL/Telewest.
According to reports, Sky chief executive James Murdoch is considering placing a bid for OneTel, the telecoms business that Centrica has put up for sale for £300m.
Sky is still leading the market with 7.8m subscribers and is on track to meet its target of 10m by 2008, but it looks like the gap could close if more customers are attracted by NTL/Telewest's offering.
Broadband and video-on-demand supplier Homechoice, broadband services group Easynet and Pipex are also believed to be potential targets.
A Sky spokesman refused to comment on a potential move into broadband.
Sky also said in the statement the funds could be used for "general corporate purposes" and to rebalance its debt portfolio.
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