News Corp bid for BSkyB referred to regulator

[xchrom]

http://hosted.ap.org/dynamic/stories/E/EU_BRITAIN_BSKYB?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-07-11-13-38-02

LONDON (AP) -- A final decision on Rupert Murdoch's biggest takeover battle has been delayed for several months after the British government referred News Corp.'s bid for British Sky Broadcasting PLC 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.

"I think it is a smart move, it allows politicians some wiggle room, it takes all the political pressure off," Louise Cooper, media analyst at BGC Partners said. She added that Murdoch had done the government a favor by forcing a competition inquiry - a favor which the media mogul will hope to redeem in the future.