Government of UK Not Able Reach a Decision over News Corp-BSkyB Review

The Government of UK has not been able to make a decision on whether it should consider the takeover proposal of pay-TV group BSkyB for review.

According to the BBC, the media regulator Ofcom will be asked to keep a check on any takeover and its impact and to look whether the voices within the British media sector are reduced.

British newspapers The Sun, The Times, the News of the World and Sunday Times are owned by the News Corp., which wishes to take over 61% of the leading British pay-TV group.

The Department for Business said in a statement, “The Secretary of State has not made a decision on this matter -- indeed at this stage there is not even a decision for him to take. We will not be speculating on this issue”.

According to the analysts, for the political reasons Cable is likely to take over Ofcom, as the Conservative party at the recent elections is getting the support from Murdoch's mass-selling Sun newspaper.

The independent Directors of BSkyB are demanding the proposal of over 800p, whereas News Corp. is offering 700 pence per share or a total of $12 billion.

Two sides have come up with their respective price proposals, although they are looking for the final regulatory approval.