Calls To Halt BSkyB Deal Amid Hacking Scandal

Critics of the planned takeover of BSkyB by News Corporation have used the phone hacking controversy to make new calls for the deal to be blocked or delayed.

During an emergency debate on the allegations in the House of Commons, Conservative grandee Nicholas Soames was the first to demand "a pause" in the process.

Labour MP Chris Bryant , who is taking legal action against the News Of The World (NOTW) over claims his phone was hacked, also called for the takeover to be put on ice.

He added that News Corp, the parent company of News International, which publishes the tabloid, had "far too great a sway over our national life".

Rupert Murdoch's News Corp has made a takeover bid for BSkyB, the satellite broadcaster that owns Sky News.

Under takeover plans put forward by News Corp earlier this year, Sky News would be spun off as a separate company, to allay concerns over media plurality.

Culture Secretary Jeremy Hunt said last week he was "minded" to give a final green light to the deal pending a further seven-day public consultation.

If it does go ahead, News Corp would acquire the 61% of BSkyB it does not already own.

Alan Rusbridger, editor of The Guardian, explained why he is so opposed to News Corp taking full control of BSkyB.

"What we see with this story is a lot of people who were very frightened of a very big and powerful company," told Sky's Jeff Randall .

He added: "I think most people in this country think it's not desirable to give it even more power and even more dominance.

"And that's the lesson of what's happened in the last couple of years."

The Government has always insisted the phone hacking allegations cannot be used as justification to block the takeover.

This was echoed by Attorney General Dominic Grieve during the Commons debate.

"Ministers of the Crown have to be rather careful about simply changing decisions on the hoof," he said.

He added: "So far as the question as to whether any organisation is a fit and proper person to own a broadcasting licence, that question is a matter for Ofcom and not for the Secretary of State."

Broadcasting regulator Ofcom said in a statement: "It is clearly not for Ofcom to investigate matters which properly lie in the hands of the police and the courts.

"However we are closely monitoring the situation and in particular the investigations by the relevant authorities into the alleged unlawful activities.

"In the light of the current public debate about phone hacking and other allegations, Ofcom confirms that it has a duty to be satisfied on an ongoing basis that the holder of a broadcasting licence is fit and proper."

But Sky News understands Ofcom cannot block the takeover on the basis of an accusation rather than a criminal conviction against a potential licensee.

Shares in BSkyB, the owner of Sky News, ended the day's trading in London 2.1% lower at 827p, while News Corp shares dropped by as much as 5% at one point of trading in New York.