Jeremy Hunt attacked as he stalls over BSkyB bid referral
Culture Secretary Jeremy Hunt was accused of giving favourable treatment to Rupert Murdoch today as he kept the door open for News Corporation's planned takeover of BSkyB.
Mr Hunt confirmed that media regulator Ofcom wants the deal referred to the Competition Commission, but said he was delaying a decision so the company could offer concessions.
In an early morning announcement, Mr Hunt published a redacted version of the Ofcom report and letters between him and Mr Murdoch's company.
He said that he would wait before referring the bid to the commission, which has the power to block it, in order to hear special "undertakings in lieu" from News Corporation, whose European chairman is Mr Murdoch's son, James.
"I still intend to refer the merger to the Competition Commission," Mr Hunt said. "News Corporation says that it wishes me to consider undertakings in lieu which it contends could sufficiently alleviate the concerns I have, such that I should accept the undertakings instead of making a reference."
But Labour claimed the move looked like a stitch-up and called for Mr Hunt to be hauled before the Commons for questioning.
Shadow culture secretary Ivan Lewis said: "Ofcom's report is clear that there are potentially serious public interest concerns raised by the deal.
"On this basis, Jeremy Hunt should have announced today he is referring the bid to the Competition Commission for a thorough and transparent investigation. His failure to do so raises further questions about the Government's conduct of this semi-judicial process."
Mr Murdoch's company, which owns The Sun, the News of the World and The Times, made an £8 billion approach in June to buy the 61 per cent of BSkyB it does not already own, but critics say the merger would give the media empire too much power.
Ofcom will be asked to say if News Corporation's promises meet its concerns, and the Office of Fair Trading will also be brought in to the process. If the terms are accepted, there will be a 15-day consultation.
The company is keen to head off calls for Sky News to be split from BSkyB in return for a go-ahead.
Labour said a call from the media watchdog would usually result in an instant referral. A party source said: "We have always said that if Ofcom says it should be referred, then it should be referred."
