BSkyB shares fall further

Shares in BSkyB fell sharply again today after it emerged that British Culture Secretary Jeremy Hunt is to write to Ofcom for advice on News Corporation’s proposed takeover of the satellite broadcaster.

The shares dropped more than 6% to around 700p, in line with the price that Rupert Murdoch’s company originally proposed last July when it first revealed its interest in bidding for the outstanding 61% of BSkyB.

Mr Hunt is expected to ask the regulator to clarify if the decision by News Corp to close the News of the World gives additional reasons for concern over the issue of media plurality.

He will also ask if the events at the News of the World have any impact on the credibility and undertakings offered by News Corp as part of its offer.