BSkyB shares slide on News Corp woe

SHARES in British Sky Broadcasting continued to fall yesterday on worries that News Corporation's takeover bid might be blocked, getting no immediate relief from the company's announcement late in the day that it was closing the scandal-racked News of the World.

The shares were down 1.8 per cent at 812p at the close, extending losses over three days to 4.5 per cent. They had traded as high as 850p on Monday, before it was alleged that the newspaper had hacked the phone of murdered schoolgirl Milly Dowler.

The paper also allegedly hacked the phones of grieving families, celebrities, royals and politicians in a quest for attention-grabbing headlines.

Rupert Murdoch's News Corp, the paper's owner, has gained preliminary clearance from the government to bid for the 61 per cent of BSkyB shares it does not own. Some politicians, however, have called for the deal to be blocked and Culture Secretary Jeremy Hunt played down speculation that a decision had been delayed until September.

A consultation period ends today. The department said it had received more than 100,000 comments on the proposal but refused to say how many were for or against the deal.

Sam Hart at Charles Stanley said investors were getting nervous. It was not clear whether News Corp's decision to close the News of the World might ease opposition to its takeover bid for BSkyB.