Hunt seeks BSkyB takeover advice

Mr Hunt is writing to Ofcom and the Office of Fair Trading (OFT) seeking opinions on whether the matter could be referred to the Competition Commission in light of revelations in the phone hacking scandal.

The move came amid the threat of a coalition crisis, with the Liberal Democrats appearing likely to side with Labour in a Commons vote on the issue this week.

Media mogul Mr Murdoch held talks with some of his most trusted lieutenants last night after flying in to the UK on the day the News of the World was shut down to take personal charge of the crisis.

Among those who met over dinner was News International chief executive Rebekah Brooks - editor of the News of the World at the time the mobile phone of murdered teenager Milly Dowler was hacked.

It was reported that Ms Brooks - who has faced sustained calls to quit but denies any knowledge of hacking on her watch - will be interviewed by Scotland Yard detectives investigating hacking and corruption claims this week.

Questions have been raised about who at News International was aware of an internal report from 2007 which was only recently passed by the firm to the police. It is reported to show the existence of payments to police officers for information and that hacking was more widespread than thought.

Labour leader Ed Miliband yesterday urged Mr Murdoch to put his expansion plans on ice for the duration of the criminal probe.

The Opposition is planning to trigger a Commons vote on Wednesday calling for a delay in the BSkyB takeover.

Liberal Democrat party president Tim Farron said in principle his colleagues would back a critical motion.

“I cannot see how, if a legally worded motion comes to the House opposing a further Murdoch takeover of BSkyB, I cannot see how Liberal Democrats would vote against that,” he told the BBC Radio 4 Today programme.

“It is no secret that Lib Dems as a body have always opposed the lack of plurality in our media, and in particular have felt that Rupert Murdoch’s influence on British politics through the media has been nefarious. We have thought that for decades.”

However, Mr Farron indicated that he believed Mr Hunt’s decision to write to Ofcom this morning was a positive step, and said the situation was likely to have “changed significantly” by the time of the vote on Wednesday.

The MP suggested that if Lib Dem Business Secretary Vince Cable had not been “caught out” criticising the BSkyB deal to undercover reporters - and stripped of decision-making powers on the takeover - the Government would already have been taking stronger action.