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Regulator to investigate Murdoch's BSkyB bid

LONDON (AP) — The British government intervened yesterday to investigate the offer by Rupert Murdoch's News Corp. to buy full control of satellite broadcaster British Sky Broadcasting, a bid which has drawn strong opposition from competing news organisations.

Business Secretary Vince Cable yesterday called for the broadcasting regulator, OFCOM, to investigate whether the News Corp. bid raises concerns about competition in the media sector, and to report by December 31.

The European Commission said on Wednesday that it is also investigating the News Corp. bid, and intends to complete an antitrust review by December 8.

British law demands "a sufficient plurality of persons with control of media enterprises serving the same audience in any given area of the UK." That assessment may include not only the number of enterprises but also the market shares.

News Corp. already has full ownership of four major British newspapers: The Times, The Sunday Times, The Sun and the News of the World, the nation's largest. The Sun is the biggest-selling daily paper, and New of the World tops the Sunday circulation figures.

News Corp. is seeking to acquire the 61 percent of BSkyB shares that it does not already own.

BSkyB accounts for two-thirds of pay TV subscribers in Britain, has a large share of all commercial television advertising and has "an uncontested position of dominance in the provision of televised sports in the UK," according to a recent report by media research firm Enders Analysis.

"On the basis of the information and submissions available to me, I have decided that it is appropriate to issue an intervention notice in this particular case," Cable said.

"The independent experts at OFCOM will now investigate and report to me on the media plurality issues that may arise from this proposed acquisition."

News Corp.'s initial offer of 700 pence per share was rejected in June by BSkyB's board, which said it would have considered an offer above 800 pence per share.

The British Broadcasting Corp., the Telegraph newspapers, the Daily Mail and internet provider BT Group PLC are among the media competitors who oppose the News Corp. bid.