News Corporation withdraws bid for BSkyB

Rupert Murdoch's News Corporation has withdrawn its contentious bid for british channel, BSkyB, in the backdrop of the phone-hacking scandal by his newspaper, News of the World, which ceased publication on Sunday, and a probe by the UK Parliament.

News Corporation today said that it no longer intends to make an offer for British Sky Broadcasting Group PLC.

It said in a statement, " News Corporation announces that it no longer intends to make an offer for the entire issued and to be issued share capital of British Sky Broadcasting Group PLC (BSkyB) not already owned by it."

The statement quoted Chase Carey, deputy chairman, president and chief operating officer, News Corporation, "We believed that the proposed acquisition of BSkyB by News Corporation would benefit both companies but it has become clear that it is too difficult to progress in this climate. News Corporation remains a committed long-term shareholder in BSkyB. We are proud of the success it has achieved and our contribution to it."

However, in the statement quaalified its withdrawal saying it could make an offer int he future if permitted by The City Code on Takeovers and Mergers, or if a rival bid for BSkyB emerged.

It said, "In the event that News Corp is permitted pursuant to the City Code to announce an offer or possible offer for BSkyB, News Corp reserves the right to do so at any price and at a price less than 700 pence per BSkyB Share in the event that either: (i) it is recommended by the Board of BSkyB; or (ii) there is an announcement by a third party of an offer or a possible offer for BSkyB at a price lower than 700 pence per BSkyB Share; or (iii) BSkyB declares, makes or pays a dividend which is in excess of its stated dividend policy at the time of this announcement; or (iv) it is so permitted by the City Code.