Testifying at Britain’s long-running inquiry into media standards, Prime Minister David Cameron rejected suggestions that he traded policies favorable to Rupert Murdoch for electoral support from Murdoch’s newspapers.
News Corp.’s stock had its best day since the phone-hacking scandal broke, rising more than 5% Tuesday while Rupert Murdoch and his son and deputy, James, testified before a committee of the British Parliament in London.
Parliament is due to break up for the summer on Tuesday, but British Prime Minister David Cameron, who was in South Africa, said that “it may well be right to have Parliament meet on Wednesday so I can make a further statement.” Murdoch’s former British CEO — and Cameron’s friend — Rebekah Brooks, was arrested Sunday on suspicion of hacking. Then, London police chief Paul Stephenson resigned Sunday over his ties to Andy Coulson, a former editor of the shuttered tabloid News of the World, who was arrested earlier this month over hacking.
In what could be a major blow to Rupert Murdoch’s $14 billion plan to buy U.K. satellilte company BSkyB, the British government said today that it has pushed back its review of the deal while it sorts through the implications of the News Of The World phone hacking scandal.