UNITED KINGDOM: Opposition leader Ed Miliband presses Prime Minister David Cameron to halt Rupert Murdoch's News Corp's bid for full ownership of the satellite broadcaster, BSkyB
Record ID:
561031
UNITED KINGDOM: Opposition leader Ed Miliband presses Prime Minister David Cameron to halt Rupert Murdoch's News Corp's bid for full ownership of the satellite broadcaster, BSkyB
- Title: UNITED KINGDOM: Opposition leader Ed Miliband presses Prime Minister David Cameron to halt Rupert Murdoch's News Corp's bid for full ownership of the satellite broadcaster, BSkyB
- Date: 12th July 2011
- Summary: LONDON, ENGLAND, UNITED KINGDOM (JULY 11, 2011) (REUTERS) VARIOUS OF STUDIOS AND OFFICES OF BSKYB
- Embargoed: 27th July 2011 13:00
- Keywords:
- Location: United Kingdom, United Kingdom
- Country: United Kingdom
- Topics: Business,Communications,Politics
- Reuters ID: LVAAHMVD99U2GT9O3F6FIU4Q7OM9
- Story Text: The British government has asked the media regulator to reassess media baron Rupert Murdoch's takeover bid for broadcaster BSkyB in the light of a phone hacking scandal, a move that could provide a basis to block the multi-billion dollar buyout.
The development underlined the political pressure on Prime Minister David Cameron over the revelations, which have caused public outrage over the behaviour of some journalists, police and politicians.
The new request to media regulator Ofcom, which is already assessing whether News Corps is a 'fit and proper' holder of a broadcast license, follows a report in the Independent newspaper that lawyers were drawing up plans to block Murdoch's bid to buy out the profitable pay-TV operator BSkyB.
Shares in BSkyB dropped more than seven percent on Monday (July 11) morning after a similar fall on Friday (July 8). News Corp shares fell more than 5 percent in New York last week.
Murdoch himself has shown no sign of backing away from the deal.
Opposition Labour party leader Ed Miliband said on Sunday (July 10) he would force parliament to vote this week if Cameron did not take steps to halt News Corp's $14-billion bid for the 61 percent of BSkyB that it does not already own.
A vote in parliament could split the coalition between Cameron's Conservatives and the Liberal Democrats who, traditionally less favoured by Murdoch's media, have signalled they could vote with Labour on the issue.
It would also give Labour a chance to cast itself as the champion of a public angered by allegations that News of the World reporters and editors were complicit in illegally hacking the voicemails of a murdered girl, London bombing victims and Britain's war dead in search of stories.
"The first thing I would say to Mr. Murdoch is, drop the bid for BSkyB," Miliband said on Monday.
"That is the most important thing he should do. He should recognise that the cloud of allegations swirling around News International make it completely untenable for this bid to go ahead, and I think he must recognise that. The second thing he should do, is he should make people at News International who are responsible for what happened, in the sense that it happened on their watch, like Rebekah Brooks, take responsibility and resign," he added.
Murdoch has said he stands by Rebekah Brooks, news editor at the time of the newspaper at the centre of the phone hacking scandal, the News of the World. Brooks is at present the Chief Executive Officer of News International, News Corp's British arm.
Murdoch flew into London on Sunday to take charge of attempts to save the BSkyB deal and limit the damage to News Corp, the world's largest news conglomerate. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None