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Whistle blown on soccer deal
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October 29, 1998: 8:17 a.m. ET
Murdoch's soccer takeover referred to competition watchdog
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LONDON (CNNfn) - The bid by Rupert Murdoch's BSkyB for soccer club Manchester United has been referred to the U.K. competition authorities.
Peter Mandelson, Secretary of State for Trade and Industry, has asked the Monopolies and Mergers Commission (MMC) to look into the £623 million ($1 billion) deal.
"It's not really a surprise," said BT Alex Brown analyst Jason Holden, "Mandelson probably feels he needs to be seen to be doing the right thing, in view of the public comment".
Giving the MMC until March 12, 1999 to rule on the takeover doesn't mean the deal won't be nodded through, however.
The Director General of Fair Trading, which advised Mandelson to refer the deal, said BSkyB's offer for the club "raised competition issues in respect of the broadcasting of premium English football, and may have implications more generally for competition in the broadcasting market".
Analysts were skeptical that the MMC would rule against BSkyB. "I don't see on what grounds they can block it under existing competition law, but who knows?" said BT Alex Brown's Holden.
Manchester United shares slipped just 1.5 pence to 211.5 pence, below the 240 pence per share offer from BSkyB.
BSkyB shares were unchanged.
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Manchester United
BSkyB
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