British Sky shares plummet

Shares in British Sky Broadcasting continued to fall last week amid worries that News Corp's takeover bid might be blocked, the Business Scotsman reports.

There was also no immediate relief after News Corp revealed that it was closing the scandal-racked News of the World.

The shares were down 1.8% at 812p at the close, extending losses over three days to 4.5%.

According to The Telegraph, more than 100 000 people and organisations made last-minute submissions to the government's consultation on the proposed bid as the phone hacking scandal deepened, leaving the Department for Culture, Media and Sport with months of work ahead of them before Jeremy Hunt, the culture secretary, can reach a decision.

Hunt was originally expected to deliver his final verdict on the proposed deal just before parliament's summer recess on 18 July.

It is now not expected to make a decision until at least September, according to sources, and it could be as late as 2012 if a way is not found to speed up the process.

An earlier consultation on News Corp's proposed bid to buy the 61% of BSkyB it does not already own received around 40 000 of submissions, which took civil servants and lawyers a full three months to work through.

Responding to the question, Baroness Rawling - government spokesperson in the Lords for Culture, Media and Sport - said Hunt would consider all responses, states Sky News.

“The secretary of state will not be rushed,” she said, adding that all responses would be considered and no deadline for a decision had been set.

Rawling also pointed out that Hunt had to make the decision over whether to accept the bid proposal “strictly on media plurality within the law”.