James Murdoch denies using political influence for attempted BSkyB takeover

James Murdoch denied yesterday that he used the political influence wielded by his father's newspapers to help him with the largest acquisition in his company's history even as his father's media empire was hit with a scandal over hacking phones.

Rupert Murdoch's News Corp had to drop a $12-billion bid for gaining full control of pay TV group BSkyB last year following revelations that his News of the World tabloid had illegally hacked into phone messages on a massive scale to obtain scoops.

At a judicial inquiry into press ethics set up after the scandal, Rupert's son James had to undergo extensive questioning on his handling of the affair and his dealings with the government. He accepted being extremely close to the minister responsible for the final decision on the BSkyB takeover, Jeremy Hunt.

He also acknowledged having discussed the takeover plans with prime minister David Cameron at a private dinner, although he said he generally left politics to his father and editors at the newspapers.

The high-profile inquiry has been closely followed in Britain as it drew testimony from movie stars and other celebrities into the behaviour of the country's press. The enquiry is now engaged in a broader assessment of ties between politicians and press barons, especially Rupert Murdoch, who has wielded enormous influence for four decades.

When the scandal hit last year, the younger Murdoch was coordinating operations at  his father's UK newspaper empire and was chairman of BSkyB, over which News Corp, the largest shareholder, was seeking government permission to take full control.