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July 4, 2011 by · Leave a Comment 

Britain’s Culture Secretary, Jeremy Hunt, said over the weekend that he will allow opponents of Rupert Murdoch’s effort to buy complete ownership of satellite operator BSkyB until the end of this week to raise final objections. Hunt has already telegraphed that he is disposed to giving Murdoch’s News Corp the clearance to complete the acquisition. However, analysts have begun questioning whether News Corp will want to go ahead with the deal now that shares have reach 850p (about $14) per share, well above the 700p (about $11) that Murdoch had offered — including a premium — a year ago. Today’s (Monday) Guardian newspaper said that two large shareholders will likely hold out for around 1000p ($16) per share — meaning that the acquisition would cost Murdoch and company $14 billion. “That’s a big premium for something you control already and you have no other bidders,” Needham investment bank analyst Laura Martin told the newspaper. Moreover, in order to satisfy British regulators, News Corp has agreed to sell off Sky News, BSkyB’s 24-hour news service in the U.K. That raises the question, who is going to buy it? The news channel has never made a profit.