News Corp’s bid for Sky to get clearance
CULTURE secretary Jeremy Hunt is likely to rubber stamp News Corp’s bid for BSkyB within a fortnight.
He is expected to trigger a final seven day period of consultation after receiving documents from Ofcom outlining a series of guarantees over the future financial and editorial independence of Sky News.
Hunt will be unable to issue a decision before next week as he is on an official visit to Brazil with deputy prime minister Nick Clegg.
Hunt has previously signalled he is likely to accept the terms of the bid after News Corp addressed concerns over media plurality. It has agreed to “hive off” the loss-making Sky News, putting in place an independent chairman and guaranteeing it a minimum level of funding.
Ofcom told City A.M. it has delivered the document but would not confirm whether it believes the plurality concerns have been fully addressed.
Last summer Murdoch bid 700p a share for BSkyB, which was rejected by the board, who signalled they were holding out for 800p.
The two agreed to address regulatory concerns before continuing negotiations. Sky has performed strongly in the meantime, with some investors now calling for 950p a share.