Murdoch's $1B bid tackled
|
|
April 9, 1999: 11:22 a.m. ET
Government blocks bid for UK's largest soccer club; 'against the public interest'
|
LONDON (CNNfn) - The U.K. government dealt a heavy blow to Rupert Murdoch's European media ambitions Friday, when it blocked a $1 billion bid by the tycoon for Manchester United, the country's most successful soccer club.
Trade minister Stephen Byers said the proposed takeover "was not in the public interest," citing the likelihood of reduced competition in the broadcasting of soccer matches.
Byers said a combination of Manchester United (MNU) and BSkyB (BSY), the U.K.-listed media giant would give the enlarged group additional influence over the organization of soccer in the United Kingdom, and could "have the adverse effect of damaging the quality of British soccer."
BSkyB is 40 percent-owned by Murdoch's News Corp.
The price offered for Manchester United is believed to be the highest ever for a sports club.
In London Manchester United shares collapsed 15 percent to 187 pence, while BSkyB stock was virtually unmoved at 543 pence.
There could be wider implications from the government's block on the deal: Murdoch-owned newspapers have enjoyed a relatively harmonious relationship with Britain's Labour government. Support from newspapers such as the tabloid Sun and London's Times was seen as crucial in the party's election success. Whether those papers will remain so supportive in future is now open to question.
|
|
|
|
Manchester United
BSkyB
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
|
|