News Corp’s bid for BSkyB referred to Ofcom

4 Nov 2010

The proposed takeover of British triple-play provider BSkyB by News Corp has been referred to the country’s telecoms regulator, Ofcom, by business secretary Vince Cable. The Financial Times is reporting that the referral follows the filing of an official proposal by Rupert Murdoch-owned News Corp to buy out the 60.9% stake in BSkyB that it does not already own; in June 2010 a GBP0.675 (USD1.08) per share offer was turned down, as was a revised bid of GBP0.7 per share. A statement from the Department of Business, Innovation and Skills noted that the decision to refer the matter to the watchdog had been taken ‘on the basis of the submissions and information that the secretary of state has received regarding the proposals,’ with Ofcom now expected to issue its findings on the matter, including whether the acquisition should be studied by the Competition Commission, by the end of the year. Dependent on Ofcom’s filing the proposed purchase could be delayed by up to a year.

United Kingdom, Sky