Cable refers News Corp bid for BSkyB

Mr Cable stepped in on public interest grounds over media plurality following mounting pressure from rival media groups after Rupert Murdoch's News Corp made an offer for the 61 per cent of BSkyB that it does not already own.

The intervention notice served requires Ofcom to investigate the proposals and report back by December 31.

Mr Cable said he made the move after submissions and information regarding News Corp's approach.

British media groups - including national newspaper owners and broadcasters - recently joined forces to petition Mr Cable to block the plans over fears the deal posed a threat to competition and media plurality.

News Corp's rivals argue the takeover would create an organisation of unrivalled power in the UK media sector.

If the deal went ahead, News Corp would have a dominant position in newspapers, owning UK titles including The Times and The Sun, while also having full ownership of a pay TV company - an empire with an estimated turnover of 7.5bn.

Mr Cable said: "On the basis of the information and submissions available to me, I have decided that it is appropriate to issue an intervention notice in this particular case.

"The independent experts at Ofcom will now investigate and report to me on the media plurality issues that may arise from this proposed acquisition."