Hunt expected to greenlight BSkyB deal next week
23 Jun 2011
Rupert Murdoch's News Corp has reached an agreement with UK media regulator Ofcom over the terms that would allow News Corp to take forward its bid to gain total control of BskyB. Culture secretary Jeremy Hunt is expected to approve the deal next week.
The regulator yesterday submitted its report to the Department of Culture, Media and Sport and Hunt is now expected to announce that the takeover may go ahead.
Hunt, who this week is in Brazil on an official visit with the deputy prime minister Nick Clegg, has previously indicated he had a mind to accept News Corp's purchase of the 60.9 per cent of BSkyB shares it does not already own, provided it agreed to spin off Sky News into a separate ownership. That remedy is expected to suffice to ensure that Hunt does not need to refer the bid to the Competition Commission.
The deal has been vigorously opposed with a previous consultation exercise receiving 40,000 objections. Rival
media groups have campaigned against the takeover, on grounds of the company getting too much control over the British media.
News Corp is yet to negotiate a price with BSkyB shareholders, who have previously rejected a 700p-a-share offer as being low by 100p.
Meanwhile, even as some hurdles seem to be clearing, it would be Sky's independent directors and shareholders who would finally decide whether Murdoch walks off with the broadcaster.
Investors are understood to be aiming for £10 or more, with Sky reaping the full benefit of its two decades of heavy investment in sports and film broadcast rights.