Hunt clears News Corp’s BSkyB bid, almost

Jeremy Hunt has confirmed that he plans to give News Corporation’s BSkyB takeover bid the green light but will consult on extra conditions.

The spin-off of Sky News is the key condition to alleviate plurality fears, though a “more robust set of undertakings” will be put out to further consultation, with a deadline of midday on Friday 8 July.

The extra undertakings include having an independent director present at Sky News board meetings where decisions on editorial matters are taken and a requirement for Sky to continue to cross-promote the 24 hour news service on its channels.

The other extra undertakings agreed during protracted negotiations between Hunt, News Corp, the Office of Fair Trading and Ofcom are for the appointment of a monitoring trustee whose main role is to ensure that News Corp complies with the undertakings in the run up to spin-off, and a requirement for Sky News’ articles of association to be approved by the culture secretary.

Speaking at the Future of Broadcasting conference yesterday, Ofcom chief executive Ed Richards said the Sky deal had been cleared by the competition authorities in Brussels.

Ofcom’s focus has been on the separation of Sky News, with Richards confirming that he wanted “structural” protections as well as the “behavioural” protections, such as impartiality rules.

In a statement, Hunt said: “I have considered carefully the points raised and, as at all steps in this process, taken advice from the independent regulators. The regulators have confirmed that the proposed undertakings are still sufficient to ensure media plurality.

“I could have decided to accept the original undertakings but a number of suggestions were made in response to the consultation which could further strengthen the undertakings, particularly around editorial independence, business viability and the articles of association. I am therefore proposing some changes to the undertakings and I will now hold a further public consultation.”

Sky investors are reportedly pushing for almost £4 billion more than the original £7.8 billion offered by News Corp a year ago.

Sky’s share price was 848p at the close of the market on Wednesday.