BSkyB shares plunge as News Corp bid mired in uncertainty

[beac]

Source: The Guardian

BSkyB shares tumbled again on Monday after News Corporation's bid to take control of the broadcaster was plunged into uncertainty.

In early, volatile trading in London BSkyB shares fell as low as 695p, a fall of more than 7% – wiping another £800m off the value of the company. This brought BSkyB's share price below Rupert Murdoch's original offer price of £7 a share – which had appeared unreasonably low before the phone-hacking scandal struck his News Corp empire.

"At £7 per share, the City is telling you that the BSkyB takeover is off," said Louise Cooper, market analyst at BGC Partners. Alex DeGroote, analyst at Panmure Gordon, estimated that there is now only a 10% chance of the deal being successful and dubbed it a "political hot potato".

The selloff was sparked by the news that culture secretary Jeremy Hunt is asking for fresh advice from Ofcom and the Office of Fair Trading (OFT) about News Corp's takeover bid for BSkyB. This development, which came as Labour leader Ed Miliband pushed for a House of Commons vote on the issue, appears to increase the likelihood of Hunt referring the deal to the Competition Commission.



Read more: http://www.guardian.co.uk/business/2011/jul/11/bskyb-shares-plunge-news-corp-bid

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Hitting Murdoch in the only place he feels it-- his wallet. Not only is the deal in peril but the 39% of BSkyB that he already owns is worth a hell of a lot less now. The schadenfreude is too, too delicious.

[Sarah Ibarruri]

1. THANK GOD! THERE IS A GOD!!!!!!!!!!!!!!!!!!!!!!!!! Let BSkyB DIE. nt

[Stuart G]

2. Of all the things out there...This one hurts him right now,

immediately and instantly.

This deal is ruined. He looses millions now.
That is all this asshole knows.

[beac]

8. Looking worse for him by the minute:

Hunt sends BSkyB takeover back to Ofcom over phone hacking

http://www.guardian.co.uk/media/2011/jul/11/bskyb-takeover-review-phone-hacking

[beac]

9. More bad news for Voldemurdoch's wallet:

Dismissed News of the World journalists may have grounds to sue

House of Lords case in 1997 set precedent for former employees to claim compensation for stigma

http://www.guardian.co.uk/media/2011/jul/10/news-of-the-world-journalists

[onehandle]

3. Unless Murdoch greases the right palms, puts in a lower bid, and saves millions on the purchase.

All part of the master plan?

[Stuart G]

4. Maybe you are correct, but no one knows how this saga will end.

Because we are in the first act.. We ain't to the third yet, and there may be a fourth.
Who knows? I hope he looses everything he has ever gained, and his family too.

[Cirque du So-What]

5. I don't think so

There isn't as much tolerance for malfeasance as in the USA. If 'Sir' Ruprecht Morlock were allowed to make a killing on deflated shares of BSkyB, there would be rioting in the streets.

[onehandle]

6. I don't think so either. And yes, over here it would be tolerated.

And malfeasance is even heralded in the U.S.

[beac]

7. As I understand it, he is locked into that bid with no option to renegotiate.

So, in the unlikely event the deal does go forward, he'll be stuck WAY overpaying for those shares.

[warrior1]

10. and on a side note.

Looks like the Hillbilly Grifter from Wasilla isn't finished fleecing her fans.

[NM Independent]

11. Such great news to greet me on my Monday morning :D

May the sorry bastard live long enough to watch his precious empire burn. Maybe he'll get to see his heir apparent thrown in jail as well. Maybe, just maybe he can share a cell with him.

[Kingofalldems]

12. K and R