Rachel_Sandford
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The directors of BSkyB have written to shareholders, rallying behind James Murdoch, who is currently deputy chief operating officer of News Corporation, which is the largest Sky shareholder, owning 39.1% of the broadcasting company.
In the letter, written by Nick Ferguson who is the leading independent director, shareholders are urged to re-elect James Murdoch as non-executive chairman, a position he's held since 2007. Almost 2/3rds of News Corporation investors voted against him two months ago; doubts of his leadership have been expressed and concern over the amount of time he'd spend at News Corp has also been voiced.
Sky investors are to vote at its annual general meeting in London on November 29[SUP]th[/SUP]. ABI has issued an Amber Top Alert, the highest of three color warnings that advises shareholders to think about their votes well. While he isn't expected to lose the vote, given News Corp's stake in the company, having a large percentage vote against him will still reflect badly on his reputation. The letter is asking for a near unanimous vote.
Despite Ferguson's encouraging words, technically, if Murdoch's implication in the phone-hacking scandal is heightened, Ofcom could rule against him, revoking his broadcasting license. The investigation into the scandal, which is currently ongoing, is affecting Murdoch's reputation. Tom Watson, the MP who has led the pursuit has likened Murdoch to a mafia boss.
Ferguson says, however, that the scandal has had no negative effect on Sky, writing there has been no evidence of “any negative reputational effect on the company, as a result of the News of the World issues. We have seen no effect on sales, customers or suppliers over the last five months. The recent results substantiate that. We have seen no effect on the share price, which has materially outperformed the peer group and the FTSE since the bid ended. Finally, we have seen no negative effect internally.”
The letter also gave Murdoch a glowing review. “Clearly there has been a great speculation on this,” Ferguson wrote. “But your independent directors will always deal with substance... We have known James for some eight years, and during that time he has always acted with integrity in the eyes of both the board and the senior management. If this was to change, clearly the independent directors would re-evaluate the position.”
Other parts of the letter stated that “[Murdoch] is visibly a good chairman with good well-structured open meetings.” and that “He is respected and trusted by the CEO and other senior management, and he has excellent strategic insight.”
Murdoch, who is being groomed to take over his father's media empire, could really use the vote. Having BSkyB renew their faith in him could help sway public opinion during what is sure to be a very trying time.
In the letter, written by Nick Ferguson who is the leading independent director, shareholders are urged to re-elect James Murdoch as non-executive chairman, a position he's held since 2007. Almost 2/3rds of News Corporation investors voted against him two months ago; doubts of his leadership have been expressed and concern over the amount of time he'd spend at News Corp has also been voiced.
Sky investors are to vote at its annual general meeting in London on November 29[SUP]th[/SUP]. ABI has issued an Amber Top Alert, the highest of three color warnings that advises shareholders to think about their votes well. While he isn't expected to lose the vote, given News Corp's stake in the company, having a large percentage vote against him will still reflect badly on his reputation. The letter is asking for a near unanimous vote.
Despite Ferguson's encouraging words, technically, if Murdoch's implication in the phone-hacking scandal is heightened, Ofcom could rule against him, revoking his broadcasting license. The investigation into the scandal, which is currently ongoing, is affecting Murdoch's reputation. Tom Watson, the MP who has led the pursuit has likened Murdoch to a mafia boss.
Ferguson says, however, that the scandal has had no negative effect on Sky, writing there has been no evidence of “any negative reputational effect on the company, as a result of the News of the World issues. We have seen no effect on sales, customers or suppliers over the last five months. The recent results substantiate that. We have seen no effect on the share price, which has materially outperformed the peer group and the FTSE since the bid ended. Finally, we have seen no negative effect internally.”
The letter also gave Murdoch a glowing review. “Clearly there has been a great speculation on this,” Ferguson wrote. “But your independent directors will always deal with substance... We have known James for some eight years, and during that time he has always acted with integrity in the eyes of both the board and the senior management. If this was to change, clearly the independent directors would re-evaluate the position.”
Other parts of the letter stated that “[Murdoch] is visibly a good chairman with good well-structured open meetings.” and that “He is respected and trusted by the CEO and other senior management, and he has excellent strategic insight.”
Murdoch, who is being groomed to take over his father's media empire, could really use the vote. Having BSkyB renew their faith in him could help sway public opinion during what is sure to be a very trying time.