RUPERT Murdoch's bid for pay-TV giant BSkyB is at risk of being frozen as a phone-hacking scandal at News of the World affects its shares.
The government is facing increased pressure to block a takeover of the British satellite broadcaster amid a report that relatives of dead soldiers may have had their phones hacked by News of the World, Britain's biggest-selling Sunday paper. News International, the British newspaper arm of News Corp, said it would be "absolutely appalled" if the claims proved to be true. The main opposition Labour leader Ed Miliband said he was "disgusted" by the allegations, one day after he urged the coalition Conservative-Liberal Democrat government to delay its decision on the BSkyB deal. Miliband's demand came after a report alleged that journalists hacked the voicemail of murdered teenager Milly Dowler after her disappearance in 2002, and even deleted some messages, potentially disrupting the police investigation. Prime Minister David Cameron insisted on Wednesday that the row should not affect his government's decision, due within days, on whether News Corp should...