Phone hacking scandal deepens

[Jan Klimkowski]

Meanwhile, via Zero Hedge:

Over The Past 4 Years News Corp Generated $10.4 Billion In Profits And Received $4.8 Billion In "Taxes" From The IRS

As I write this NI accountants are writing off the loss of NOTW against the rest of the empire. Every cloud has a silver lining..... :monkeypiss:

A lil' more silver lining for us preterite folk:

Hedge funds have suffered one of their worst setbacks in years, losing tens of millions of pounds by betting that Rupert Murdoch's News Corporation was on the verge of taking full control of BSkyB.

Short-term speculators expected to make a killing by investing in a company viewed as a prime bid target, but instead have seen shares in the satellite television company plunge.

One trader said: "It's a bloodbath out there. The hedgies have dumped their holdings and some of them will be nursing big losses."

With News Corp today bowing to political pressure by abandoning its plan to take full control of BSkyB, more selling is possible in the days ahead. Brokers estimate another 100m BSkyB shares are in the hands of "arbs," funds that specialise in opportunities presented by mergers and acquisitions.

(snip)

hedge fund Perry Capital owns a stake of 1.1% and could be sitting on paper losses that run into millions if it acquired the stock at above current levels.

Several big American hedge funds have reduced their positions in BSkyB, according to regulatory filings. Taconic Capital Advisors and Davidson Kempner European Partners LLP have been net sellers. Taconic has taken its stake down to 1.45%, while Davidson Kempner is left with 0.79%.

The British hedge fund millionaire Crispin Odey, who was once married to Rupert Murdoch's eldest daughter Prudence, sold some of his 2.4% holding last week, but has topped it up again. However, the continuing decline in BSkyB's share price means Odey's paper loss is estimated to exceed £3m.

A spokesman for Odey said the group had owned BSkyB stock for about 10 years, and described the share price fall as "nothing. It was 550p a year ago."

Hedge funds had expected their investments to rise in value, because they anticipated News Corp's bid for the 61% of BSkyB it does not already own would be cleared by ministers.

Source.