The UK government has referred Rupert Murdoch-owned News Corp's bid for British Sky Broadcasting to competition authorities for review, a day after the company's UK arm shut down its Sunday paper News of the World amid a phone-hacking scandal.
The announcement on Monday by Jeremy Hunt, the UK's cultural secretary, means that the $11.9bn bid will probably be put on hold for several months.
The decision follows News Corp's withdrawal of a promise to spin off Sky News, which had been a condition for assuming complete ownership of the prominent UK broadcaster, in which it already has 39 per cent stake.
Britain's Competition Commission must now hold a full-scale inquiry into whether the takeover would break anti-monopoly laws.
The announcement on Monday by Jeremy Hunt, the UK's cultural secretary, means that the $11.9bn bid will probably be put on hold for several months.
The decision follows News Corp's withdrawal of a promise to spin off Sky News, which had been a condition for assuming complete ownership of the prominent UK broadcaster, in which it already has 39 per cent stake.
Britain's Competition Commission must now hold a full-scale inquiry into whether the takeover would break anti-monopoly laws.
