BSkyB shares hit by fears of phone hacking fallout - Athens Banner-Herald
BSkyB shares hit by fears of phone hacking fallout
By Associated Press - Athens Banner-Herald
LONDON Shares in British Sky Broadcasting continued to fall Thursday on worries that News Corp.s takeover bid might be blocked, getting no immediate relief from the companys announcement late in the day that it was closing the scandal-racked News of the World.
Shares were down 1.8 percent at 812 pence at the close, extending losses over three days to 4.5 percent. They had traded as high as 850 pence on Monday, before it was alleged that the newspaper had hacked the phone of murdered schoolgirl Milly Dowler. The paper also allegedly hacked the phones of grieving families, celebrities, royals and politicians in a quest for attention-grabbing headlines.
Rupert Murdochs News Corp., the papers owner, has gained preliminary clearance by the government to bid for the 61 percent of BSkyB shares it doesnt own. Some British politicians, however, have called for the deal to be blocked.
The British Broadcasting Corp. reported that Culture Secretary Jeremy Hunt would delay a decision on BSkyB until September, but Hunts department said no date had been set for an announcement.
A consultation period on Hunts final proposals for clearance ends on Friday. The department said it had received more than 10,000 comments from the public on the proposal but refused to say how many were for or against the deal.
Sam Hart, analyst at Charles Stanley & Co., said investors were getting nervous.
It was not clear whether News Corp.s decision to close News of the World might ease opposition to its takeover bid for BSkyB.
Hart was confident, however, that News Corp. would table an offer despite the furor.
Obviously the market is thinking that there is a possibility that News Corp.s takeover of BSkyB could certainly be delayed, if not blocked, Hart said.
Its very difficult to make a judgment on how the political side of things will play out.
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