Terry Murden: James Murdoch resignation allows BSkyB to move on

Up to now, it could consider itself the innocent by-stander in the phone hacking crisis that the Murdoch family cannot shake off.

Murdoch junior’s decision left media commentators pondering the reason for his remaining a non- executive director, one explanation being the 39 per cent holding that News Corporation retains in the business and the possibility that once the scandal has blown over it may revive its interest in acquiring the remaining shares.

There was little surprise that he chose to step down, given that he is facing further grilling as part of the media inquiry. A parliamentary report is due out that will be critical of his role in events surrounding the phone hacking episode.

He also survived a rebellion last November that saw 40 per cent of shareholders refuse to support his re-election as chairman as it was felt the takeover attempt by News Corp, which coincided with revelations over phone hacking, compromised his position.

Now working on pay-TV interests in the US, he will at least be remembered at BSkyB for a successful stewardship of the company as chief executive and its growth into a dominant force in the British broadcast sector. Few would regard him as anything other than a positive influence on the company and many believe his critical views on the industry were a welcome jolt to those who benefited disproportionately from the status quo.

The BSkyB board is likely to have accepted his resignation with regret, although there is a view that Murdoch junior is something of a sacrificial lamb to distance the company from the hacking scandal.

For all his success, there are those who believe it will be better off without Murdoch at the helm. It has replaced him with senior independent director Nicholas Ferguson, a City grandee, who will now pilot a company that can remodel itself around true corporate governance rules.

Alliance Trust battle gets down and dirty

THE extraordinary war of words between Alliance Trust and its rebellious shareholder Laxey Partners shows no sign of easing.

Other big-hitters have been sucked into the row over the trust’s performance and the outcome is anyone’s guess. Alliance’s new chairman, Karin Forseke, yesterday defended the board’s policy on buybacks and to narrowing the discount and described the latest move by Laxey to force change upon the board by requisitioning another vote as a waste of shareholders’ money.

Her statement was regarded by Laxey as premature, given that she has only been in the role for a few days and appeared to be unduly dismissive of an “approach” from Aberdeen Asset Management to take over the fund.

But, despite headlines about Aberdeen’s interest in one London newspaper, it appears that the company instigated no such move.

However, somebody saw it as being in their interest to bring Aberdeen into this row and to point out the superior performance of its Murray International trust.

The dispute is getting dirty and the pressure is still on Alliance’s chief executive, Katherine Garrett-Cox, to prove she can tough this one out. Shareholders have another chance to vote on 27 April.

Cairn headlines make for positive reading

AFTER the will-they-won’t-they saga over Cairn’s sale of Indian assets to Vedanta, and the controversy over its activities in virgin territory off Greenland, the Edinburgh company has moved into calmer waters with the acquisition of Norwegian firm Agora Oil & Gas.

The £280 million deal adds nine wells to its exploration programme and a lower risk, shorter term set of assets to the group’s more exposed activities in Greenland and the Mediterranean.

Cairn’s shares, which have fallen almost 40 per cent this year, staged a rally on the news. After being dumped out of the FTSE 100 index of leading companies last month, the company will take some comfort in the positive response to the deal.