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Murdoch BSkyB takeover decision defended by government
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Watch: Jeremy Hunt says the deal ensures Sky News will be 'more independent'
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Culture Secretary Jeremy Hunt has defended his decision to allow Rupert Murdoch's controversial bid for BSkyB to proceed.
Mr Hunt said that undertakings made by News Corporation would ensure greater independence for Sky News.
But shadow culture secretary Ivan Lewis said Labour had "serious concerns" about the decision-making process.
He questioned why the minister had decided not to refer the takeover to a full Competition Commission inquiry.
"Public interest not political expediency will determine our judgment on whether this revised package goes far enough to avoid the need for a Competition Commission enquiry," Mr Lewis said.
The culture secretary said that media plurality in the UK would be strengthened if the deal went ahead.
He explained that the chairman and the majority of board members of Sky News would be independent under the terms of the offer made by News Corp.
Continue reading the main story“Start Quote
End QuoteCorrespondence published today between Mr Hunt and News Corp indicates that News Corp has - under pressure - made greater concessions than it wanted to”
Robert Peston Business editor, BBC News
This would mean James Murdoch, Rupert Murdoch's son, stepping down as chairman, he said.
Rival media groups dismissed News Corp's offer as a "whitewash" and said they would "vigorously contest" it.
An alliance including the Guardian, Associated Newspapers, Trinity Mirror and the Telegraph said they would be "examining all legal options".
The proposed takeover is now open to consultation until 21 March, after which Mr Hunt will make a final decision.
Unless he changes his mind, it will then be down to BSkyB and its shareholders whether to accept an offer from News Corp.
'Suspicious'News Corp, which owns the Sun, the News of the World and the Times and the Sunday Times, is looking to take over the 61% of BSkyB that it does not already own.
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Watch: Deal is 'status quo plus' says media commentator Steve Hewlett
BSkyB, basically, how really good is the news, perhaps the real value lies in what they put on the system that controls our thoughts.
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