BSkyB's share price tumbles
As the scandal surrounding the News of the World's involvement in phone hacking continues to unfurl,
Following an incredible upheaval in the media world, BSkyB shares have fallen this Monday as uncertainty prevails over News Corporation's takeover of the broadcaster. The share price fell over 7 per cent to 695p, bringing them below Rupert Murdoch's original offer price of 700p. Prior to the phone hacking revelations scandal, such a price was viewed as absurdly low.
News of tumbling share prices comes on the day it is reported that culture secretary Jeremy Hunt is seeking advice from Ofcom and the Office of Fair Trading (OFT) about News Corp's proposed takeover of BSkyB. On the same day, both Nick Clegg and Ed Miliband have spoken publicly about their deep reservations regarding the takeover, the deputy prime minister asking Murdoch to do "the decent and sensible thing" and reconsider his bid.
Bloomberg reports that some investors are in fact buying up BskyB shares. However, others are panicking - particularly in light of Hunt's decision to turn to Ofcom for advice - and are selling rapidly. Murdoch insists that News Corp is still supported by many of its largest shareholders. Hunt will address the Commons later on Monday to give a statement.