News Corp closer to Sky takeover

News Corporation has received the backing of a key British official, moving one step closer to taking control of British Sky Broadcasting, reveals The Los Angeles Times.

Culture secretary Jeremy Hunt last week said he was inclined to accept News Corp's proposal to spin off Sky News into a separate company to address concerns about the editorial independence of the 24-hour news operation.

A final favourable decision, pending a 15-day public comment period, would avoid a lengthy and costly regulatory review by Britain's Competition Commission, analysts say.

According to eMoney Daily, British Sky Broadcasting Group planned to sell its 24-hour news channel to clear the way for regulatory approval of News Corp's planned takeover of the satellite TV operator.

News Corp, which owns about 40% of British Sky Broadcasting, revealed plans last summer to acquire the remaining stake in the UK's largest pay-TV operator for $21.3 billion.

Meanwhile, The Telegraph states that some leading investors are concerned that British Sky Broadcasting will be sold too cheaply and the company board may not be fully independent.

The investors concerned are believed to include Odey Asset Management, Fidelity and Blackrock. Taconic Capital Advisors, a New York-based fund, is also believed to be concerned.