LONDON — Satellite broadcaster British Sky Broadcasting PLC saw its share price plunge by nearly 8 percent Friday after British Prime Minister David Cameron indicated that the government was not going to wave through News Corp.’s bid for the company anytime soon.
At a news conference, Cameron said the government was doing everything by the book but a final decision on News Corp.’s bid would take “some time” given recent events.
His comments were later echoed by Culture Secretary Jeremy Hunt, who is assessing News Corp.’s attempt to bid for the 61 percent of shares in BSkyB that it doesn’t already own. Hunt remains under pressure from opposition politicians to refer the bid to the Competition Commission for a full-scale monopoly review, which could delay a decision even further.
BSkyB’s share price closed down 7.6 percent at 750 pence ($12). That means the company’s market value lost more than 1 billion pounds ($1.6 billion) over the day.
Its woes infected the shares of Nasdaq- listed News Corp. too. The owner of 39 percent of BSkyB saw its share price fall 3.9 percent at $16.75 around midday.
The Associated Press
