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UPDATE 3-UK minister voices concern at News Corp unit hacking

Published 04/28/2011, 01:31 PM
BSBAy
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* Culture Secretary Hunt concerned over phone hacking

* News Corp/BSkyB decision to be based on media plurality

* Manchester United's Rooney says he may be a hacking victim

(Adds Wayne Rooney, paragraph 9)

By Adrian Croft

LONDON, April 28 (Reuters) - The British minister deciding on News Corp's planned buyout of BSkyB said on Thursday he was concerned but would not be influenced by the phone-hacking scandal at the group's UK newspaper arm.

Rupert Murdoch's News of the World tabloid reversed course this month and admitted its role in a long-running phone hacking scandal that some thought might jeopardise News Corp's planned $14 billion purchase of pay-TV group BSkyB.

Asked in parliament if he would postpone his decision on the merger until a criminal probe into phone hacking was over, Culture Secretary Jeremy Hunt said: "The decision I have to take with respect to the Sky merger is about media plurality, and we are in the process of taking that decision."

"But I am very concerned about the news to do with phone hacking. It is a criminal offence," he said.

"Two people have already gone to prison, three people have been arrested and the police must ... follow their investigations wherever they lead, because the public must have confidence that in a free press, the press use that freedom responsibly," he said.

The government's final decision on the takeover is expected shortly. However, with a four-day holiday weekend looming, it will not now be announced until next week at the earliest.

News International, parent company of Britain's top-selling News of the World Sunday newspaper, had always vigorously denied it knew journalists were hacking the phones of members of the royal family, politicians, celebrities and sports stars, and blamed a handful of "rogue reporters" for the scandal.

But it said on April 8 it would admit liability and pay compensation in eight cases, though many more believe they were targeted.

Manchester United soccer player Wayne Rooney, the subject of a number of News of the World exclusive stories in 2005 and 2006, said on Thursday police had shown him documents indicating his phone may have been hacked.

News Corp's planned BSkyB deal has angered other news operators who fear the group's growing influence over Britain's media. But it took a huge step towards securing its goal in March when Britain accepted its proposals to ease competition concerns.

In return for clearance, News Corp will spin off the loss-making Sky News channel and guarantee its future by giving it a 10-year carriage deal on the Sky TV platform and a seven-year agreement to use the Sky name.

A consultation to seek reaction to the Sky News spin-off proposal has now closed, clearing the way for a final decision. (Additional reporting by Kate Holton, Keith Weir and Olesya Dmitracova; Editing by Will Waterman)

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