UK government to back motion opposing Murdoch’s BSkyB bid

[ej510]

Government will back Labour party’s motion to oppose bid to gain full control of company

LONDON — News Corp.’s bid to take over British Sky Broadcasting looked in doubt Tuesday after the U.K. government said it will back the opposition Labour party’s motion to urge Rupert Murdoch to withdraw his bid to gain full control of the company.

A final decision on Rupert Murdoch's biggest takeover battle was delayed for several months Monday after the British government referred the bid to competition authorities, as a phone hacking scandal showed no sign of abating.

The announcement Monday from Culture Secretary Jeremy Hunt followed News Corp.'s withdrawal of a promise to spin off Sky News, which had been a condition for buying the 61 percent of the satellite broadcaster that it doesn't already own.

Britain's Competition Commission now must hold a full-scale inquiry into whether the takeover would break anti-monopoly laws. These inquiries usually take six months and Murdoch must be hoping that the current febrile atmosphere surrounding the bid cools down.

Cont'd at the link: http://www.msnbc.msn.com/id/43726660/ns/business-us_business/

[salin]

1. kick and rec.

scuttle is that Cameron is signaling conservatives to vote for this measure. Take the heat off him a little bit.