Go-ahead signalled for BSkyB takeover

Culture Secretary Jeremy Hunt said he was minded to wave through the takeover by News Corporation after the media giant offered to make the channel into a separate independent company and subsidise it for a decade.

News Corp is seeking to avoid a full inquiry into plans to buy the 61 per cent of BSkyB it does not already own after Mr Hunt said last month he planned to refer the deal to the Competition Commission.

The new conditions are subject to a 15-day consultation period, but an alliance of other media organisations has already indicated it is ready to take legal action to block the arrangement.

News Corp has yet to agree a takeover price with BSkyB after its initial 700p-a-share bid, which valued the business at £12.3 billion, was rejected for being too low. The two sides agreed to postpone setting a price until the regulatory hurdles have been overcome.

Mr Hunt, who took his decision following advice from regulators, said he was “very aware” of the controversy. “If (News Corp’s) James Murdoch wanted to have greater control of the output of news in this country he would not have done this deal because he is having to relinquish significant control over the operation of Sky News.

“This is a move that will protect plurality of news provision in the UK, something that is incredibly important.”

Shadow Culture Secretary Ivan Lewis pointed out the decision came just days after former Tory chairman Lord Patten was selected as the Government’s preferred candidate to be chairman of the BBC Trust.

“This process has exposed an arrogant Government, cavalier about its responsibility to be impartial and contemptuous of the importance of transparency in circumstances where there is already a high level of public cynicism.”