Markets
Market update (AM): Government seeks further advice over BSkyB
Rob Langston, 11 July 2011
Satellite broadcaster BSkyB (BSY.L) was down in mid-morning trading at the start of the week, making further losses after Friday's slide.
The broadcaster has continued to see its share price fall as the fall-out of the phone hacking scandal at former Sunday newspaper, the News of the World, jeapordised News Corporation's bid to buy outstanding shares in the company.
The decision on whether a deal will be allowed to progress has already been put back by the culture secretary Jeremy Hunt, and further calls have been made for it to be scrapped altogether.
Hunt is believed to be taking further advice over the deal following the closure of the 168 year-old newspaper.
Rupert Murdoch, chairman of News Coporation, this weekend flew in to take control of the situation that has escalated dramatically in the past few weeks.
BSkyB's share price was down 5.7 per cent to 707p (at 1053) this morning.
Royal Bank of Scotland Group (RBS.L) dropped 2.8 per cent to 36.16p on fresh fears over a default by Greece.
Miner Vedanta Resources (VED.L) dropped 2.5 per cent to 1,924p, insurer Aviva (AV.L) was down 2.4 per cent to 425.3p, while Barclays (BARC.L) fell 2.3 per cent to 237.6p.
The biggest riser was International Power (IPR.L), up 4 per cent to 313.2p (at 1052), having earlier announced it would be seeking a voluntary contract for closure of its Hazelwood coal plant in Australia, following news that the Australian government would be implementing a new climate change plan.
Biopharmaceutical company Shire (SHP.L) and Tullow Oil (TLW.L) both rose 1 per cent to 2,000p and 1,316p, respectively.
Utilities companies Centrica (CNA.L) and United Utilities (UU.L) both rose, with share prices increasing 0.9 per cent to 330.4p and 612p, respectively.
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