HAMPSHIRE cable TV firm Virgin Media has confirmed it will be taking legal action against media giant BskyB.

The Hook-based firm has lodged papers in London's High Court claiming Rupert Murdoch's company abused its dominant position' in a deliberate bid to undermine Virgin's business.

The action comes after The Daily Echo told last month how thousands of viewers around the country lost out on TV channels they had already paid for because of the dispute.

The plug was pulled on several Sky channels being show via Virgin's cable network on March 1, including Sky One and Sky Sports News, leaving viewers to miss out on hit shows like The Simpsons and Lost.

The two firms fell out earlier this year over how much Virgin should pay to BskyB to screen some of its channels.

Richard Branson's Virgin claimed that BskyB was asking double the reasonable amount for its basic channel package, while the satellite broadcaster countered that it was only asking a fair price.

In papers now submitted to the courts, Virgin, formerly NTL, accuses BSkyB of trying to eliminate Virgin Media to ensure it remains the only supplier of pay-to-watch TV.

BSkyB, though, dismisses the claim.

No date has yet been set for the court battle.