Leveson Inquiry: Well played! How Murdoch praised Jeremy Hunt over BSkyB

• Jeremy Hunt sent a ‘great news’ message to James Murdoch on his appointment

• Culture Secretary under pressure over his contact with News Corporation

• David Cameron decides not to order an investigation into whether Mr Hunt breached the ministerial code of conduct

Text messages released to the Leveson Inquiry revealed that the Culture Secretary had enthusiastically backed the bid’s progress just hours before taking over responsibility for its passage two years ago. In December 2010, with the European Commission having backed the bid in Brussels, Mr Hunt sent a message to James Murdoch saying: “Great and congrats on Brussels. Just Ofcom to go!”

He was put in charge of the bid later that day, after it emerged Business Secretary Vince Cable had told undercover reporters he wanted to “declare war” on the Murdochs.

According to a text message from Chancellor George Osborne, his appointment was a “solution” to claims being made by News Corp that the government was biased against the bid.

Mr Hunt was in a quasi-judicial position after that, which even led to him cancelling dinner with David Cameron, to avoid any claims of malpractice.

But he continued to send texts to News Corp’s bosses. In March, he replied to public affairs chief Fred Michel urging him to be patient over the “long process” which he was pushing through.

Later in March 2011, after Mr Hunt allowed the bid to proceed, he and Mr Murdoch contacted each other once again. Mr Murdoch told him: “Well played”, to which Mr Hunt replied: “Thanks, think we got the right solution.”

But Mr Hunt today insisted that none of these contacts had swayed the decision-making process in any way. He said he had removed all “political wriggle-room” for himself by calling in both Ofcom and the Office of Fair Trading to examine the bid, moves which enraged Mr Murdoch, he said.

Downing Street today removed all threat of an inquiry into Mr Hunt by the adviser on ministerial conduct.

A Downing Street spokesperson said: “Jeremy Hunt’s evidence has shown that he acted properly while he was responsible for the BSkyB bid. He took independent advice at every turn, as well as a number of decisions which were against News Corporation’s wishes.”

“The Prime Minister will not be referring Jeremy Hunt to Sir Alex Allan (Mr Cameron’s adviser on the ministerial code).”

In a lengthy all-day session, however, Mr Hunt accepted he should not have allowed contacts between his office and News Corp to develop so extensively as the bid was in progress.

His own special adviser, Adam Smith, was forced to resign in April after the inquiry published e-mails between him and News Corp executives in which he gave backing for the bid, and said Mr Hunt was on board.

Mr Hunt insisted those claims were untrue, and said his adviser had used “inappropriate language” having been ground down by the bombardment of News Corp lobbying.

During a day’s evidence which offered further insight into the workings of the coalition, Mr Hunt revealed he was warned by his advisers that Dr Cable might attempt some “sneaky” criticism of his handling of the job.

A text to him from an adviser said: “Please don’t take any calls from Vince . . . Will explain all when we speak but he is trying to be very sneaky over News Corp.”

A further e-mail showed the same adviser warning him not to have a drink with former Downing Street communications director Andy Coulson, saying it would look bad if they were seen together. And when former News International chief executive Rebekah Brook resigned in July last year, Mr Hunt texted to his adviser: “About bloody time!”

Attempting to explain the contacts between News Corp executives and his office during the bid, Mr Hunt said he was only being “courteous”. He said the mistake was not to have foreseen the deluge of lobbying coming their way, including 542 text messages from Mr Michel.

Under cross-examination, it was put to Mr Hunt that placing him in charge of the bid was just as biased as having put Dr Cable in charge, given his well-known prior backing for the takeover.

Robert Jay QC suggested he needed to build “Chinese walls in his mind” in order to separate out his political backing for the bid and the quasi-judicial role he then had to take on. Mr Hunt said: “I was sympathetic to the bid. I hesitate to say supportive.”

But he insisted: “My suitability for the role is demonstrated by the actions I took when I did take responsibility for the role because I believe I did totally set aside all those sympathies.”

There is now likely to be further pressure for the Chancellor to attend the inquiry. It heard today Mr Osborne had been instrumental in putting Mr Hunt in post. Mr Osborne texted Mr Hunt on 21 December 2010, the day Dr Cable was forced out, to intimate that Mr Hunt was taking over. “I hope you like our solution”, he declared.

Midday: Jeremy Hunt text to James Murdoch: “Great and congrats on Brussels (following a decision by the EC to give the takeover the green light). Just Ofcom to go!”

3:30pm: News breaks that Business Secretary Vince Cable, in charge of dealing with the BSkyB bid, had told undercover reporters he wanted to “declare war” on the Murdochs.

4pm: Mr Hunt speaks to Mr Murdoch. Mr Murdoch expresses “concern” over “bias”.

4:08pm: Text to Chancellor George Osborne. “Cld we chat about Murdoch Sky bid am seriously worried we are going to screw this up. Jeremy.”

4:10pm: E-mail to Andy Coulson, Number 10 communications director. “Could we chat about this. Am seriously worried Vince will do real damage to coalition with his comments.”

4:10pm: Another text to Mr Osborne. “Just been called by James M. His lawyers are meeting now and saying it calls into question legitimacy of whole process from beginning ‘acute bias’ etc.”

4:58pm: Mr Osborne to mr Hunt, intimating Mr Hunt is going to take over from Dr Cable. “I hope you like our solution”.

Mr Hunt meets Mr Murdoch to discuss bid and says he is going to get advice from Ofcom and the Office of Fair Trading on the bid.

Later, News Corp public affairs chief Fred Michel texts Mr Hunt: “Great to see you today. We should get little [children’s names redacted] together in the future to socialise. Nearly born the same day at the same place! Warm regards, Fred”

Mr Hunt in reply, at 11:45pm: “Good to see you too. Hope you understand why we have to have this long process. Hope to meet when things are resolved.”

Mr Michel texted back: “You were very impressive. Yes, let’s meet up when it’s all done.”

Mr Michel to Mr Hunt, congratulating the Culture Secretary on his performance in the House of Commons: “You were very impressive yesterday. “

Mr Hunt to Mr Michel: “Merci! Large drink tonight.”

Same day: Mr Murdoch to Mr Hunt: “Big few days. Well played.”

Mr Hunt replied: “Thanks think we got the right solution.”

Mr Hunt to Mr Murdoch, left, “Just been with the Team GB cycling team in Manchester who are most impressed with the personal interest you show in their performance!”

Mr Hunt to Mr Murdoch after he was moved back to New York. “Many congratulations on the promotion although I am sure you will really miss Ofcom in NY!”

Mr Murdoch replies: “Thanks Jeremy – sadly I fear the won’t see the back of me that easily! Hopefully we can move our other business forward soon so we can catch up properly. Best”

Mr Hunt’s special adviser Adam Smith texts Mr Hunt to say News International chief executive Rebekah Brooks had resigned.

Hunt: “About bloody time!”