News Corp pressed to lift bid for Sky

First-quarter figures for the broadcaster are expected to show that it took on 53,000 new customers in the three months to September with revenues forecast to rise by 8 per cent to 1.5 billion.

The launch of further high definition (HD) services and sporting events including the Ryder Cup will take total customer numbers up to more than 9.9 million.

News Corp has offered to pay BSkyB shareholders 700p a share to buy the 61 per cent of the company it doesn't already own, in a 7.7bn deal, but BSkyB's independent directors have demanded an offer of over 800p.

The two sides have put price negotiations on hold while they seek regulatory approval for a possible deal.

Last week a number of major UK media organisations, including the BBC, Daily Mail and Daily Telegraph, wrote to the government to protest at the proposed deal, arguing that a deal would pose a threat to competition and media plurality. If the takeover went ahead, Murdoch's empire would have a turnover of 7.5bn compared with the BBC's 4.8bn.

The government has not yet decided whether to refer the potential deal for review but is expected to ask media regulator Ofcom to look at the impact of any takeover on the UK media market.

Sam Hart, a broker at Charles Stanley, said while he believed a deal would eventually be done at around 800p a share there was now some "nervousness" around a possible bid given competition concerns.

"My gut feeling is that regulatory clearance would be granted but the longer that takes - and for News Corp to decide if it does want to bid - means it could be well into next year before anything happens."

In the meantime, continued growth by BSkyB could provide its board with leverage to get a higher price.

"If they continue to make steady progress and profitability increases that will raise the prospects of a higher price," Hart added.

The first-quarter figures will be released on Friday ahead of BSkyB's AGM the same day. It will be the first opportunity shareholders have had to question the board over the News Corp deal.Corporate governance body Pirc has called on BSkyB shareholders to oppose the re-election of four of the broadcaster's board members, including non-executive director Allan Leighton, the former Royal Mail chairman.

The body said it did not consider Leighton to be independent because he has been on the board for more than nine years, recommending that shareholders vote against his re-election.

Pirc also raised concerns about the independence of non-executive directors David DeVoe and David Evans because they sit on the board of controlling shareholder News Corp and have held their directorships for more than nine years.

BSkyB has rejected the criticism stressing it has an annual process to determine the independence of directors.