News Corp formally notifies EU of BSkyB proposal

Media conglomerate News Corp has officially notified the European Union of its proposed $12.5 billion offer to take over British pay-TV company BSkyB, setting in motion a regulatory approval process. The move signalled the end of a period of informal talks between News Corp and the European Commission during which the commission tried to ensure it had all the information it needed for any formal review.

BSKyB and News Corp, led by chief executive Rupert Murdoch, said in June they were in talks about a possible takeover - News Corp, which owns 39 per cent of BSkyB, proposed paying £7.8 billion ($12.5 billion), or 700 pence per share, for the BSkyB stock it does not own. BSkyB's independent directors rejected the bid as too low, saying they would be prepared to support an offer above 800 pence. The two parties then agreed to seek regulatory approval before further price negotiations. The proposed deal will now be looked at by European regulators and by Britain's business secretary, Vince Cable, who may refer it for further examination to media regulator Ofcom and to the Competition Commission. BSkyB shares were up 0.1 per cent to 711 pence by 1135 GMT.