Sky News logo is visible on the screens of television in an electrical store in Edinburgh, March 3, 2011. News Corp. Rupert Murdoch has been a huge step towards securing its repurchase of $ 14 billion prized BSkyB Thursday when Britain accepted proposals to alleviate competition concerns.
Credit: Reuters/David MoirBy Kate Holton and Georgina ProdhanLONDON | Thursday, June 30, 2011 6 pm EDT
London (Reuters) - News Corp. (NWSA).(O) guaranteed the British Government for its purchase of BSkyB (BSY.)(L) Thursday after the Minister responsible for complaints has dismissed the move would give Rupert Murdoch too power and influence.
The Department of media gave his blessing to the agreement of several billion dollars after News Corp agreed to spin off BSkyB influential Sky News channel to alleviate the problems of competition between industry and politicians.
The coalition Government led by the conservative, often accused of being too close to Murdoch, announced a final consultation until 8 July period to consider new businesses for ensuring the editorial independence of Sky News.
He avoids launches an investigation in the deal, which could have caused the purchase price higher than the continuing British pay-TV Group of strongly, adding new customers and new products at a pace intoxicating of the sale.
The conglomerate of Media News Corp also owns London's Times and Sunday Times, and sold daily Serbian sister the tabloid Sun and Sunday News of the world, which is at the Centre of an investigation by police on phone hacking.
Linked to that, several celebrities continue to arm of News Corp British newspaper for listening to voice messages harvest material from the first page of scandal, leading some critics to say any agreement BSkyB must be stopped at least until the police investigations have been completed.
Global Avaaz online campaign group said it would seek to set aside the decision of the Government through challenging legal and business media rivals disappointed.
Culture Minister Jeremy Hunt said: "I am aware of the enormous interest in the proposed merger."
"I could have decided to accept original commitments, but a number of suggestions have been made... particularly around independence editorial, the viability of the company and the articles.".
The proposals define guidelines around who can become an independent administrator to the new company of Sky News, such as anyone News Corp has worked over the past five years, the role of judgment.
Independent directors should also be present at the meetings of the Council on matters of editorial decisions are made.
News Corp is not that only a majority owner of BSkyB but has played a key role in the creation of the company, while son of News Corp. Chief Executive Rupert Murdoch James is an ex - CEO and President of currently non-executive of BSkyB.
"These proposals makes the original deal more safe," media consultant Steve Hewlett told Reuters. "This is not fundamentally alter the opinions of people who, for their own commercial or other reasons, are passionately y opposites."
"But they are able to stop?" I doubt it. »
Avaaz, which brought together nearly half a million electronic signatures for a petition asking the Government to reject the deal, said: "the multi-year denials of phone hacking, followed by a belated statement of wrongdoing, show that News Corp could not be trusted to implement the commitments."
"Avaaz lawyers are reviewing the revised business and the Group may apply for leave for judicial review of decision of Hunt.
MONEY TALKS
News Corp and BSkyB can now negotiate the terms. Major shareholder of BSkyB have begun to know the price they want.
News Corp will be eager to avoid fuelling an emerging reputation as a company who overpays, following expensive acquisitions of Wall Street Journal Publisher Dow Jones & Co and social network Myspace.
On Wednesday, he sold Myspace for $ 35 million, compared to 580 million of $ it paid in 2005 for the site a hot time.
A year ago, News Corp said that he had offered 700 pence per share to 61 percent of BSkyB, it did not already own, or of 7.8 billion pounds ($12.5 billion). The independent directors of BSkyB demanded at least 800 pence.
BSkyB shares were flat at 847.5 pence at 0911 GMT.
"We anticipate a bid 850 pence over the final dividend," analyst Jefferies Nick Bell said in a note, adding he expected a final green light for the agreement shortly after on 8 July and accepted a possible bid by July 29.
"Although a number of shareholders have asked publicly well over 900 pence we consider this unlikely," he said, noting the absence of rival bidders, the multiple high on which the stock was already negotiated and the risks of a slowdown in consumption.
The battle led to a discussion on the domination of the Murdoch media and a large number were not reassured by the decision see spin-News Corp off Sky News but remain the principal landlord Fund and 40%.
Rival media, recovering from the global recession which hammered - their source of income key - the advertising are complained about, for fear of financial influence of News Corp.
"We continue to believe that this case should have been before the Commission of competition for a full investigation," an alliance of companies opposed to the agreement, including the Guardian Media Group, Trinity Mirror (FFT.)(L) and BT (BT.)(L), said in a statement.
Marc Israel, associated with the law firm Macfarlanes, said competition that Hunt was perfectly within its right to not to refer the matter to the Commission of competition for a comprehensive review.
"Ironically, for those who oppose the agreement, this result can be better than a review by the Competition Commission which could be released unconditionally after a thorough review."
($1 = 0.626 book)
(Editing by Dan Lalor)
No comments:
Post a Comment