BSkyB Murdoch revolt unlikely

INSTITUTIONAL investors in BSkyB are too small and dispersed to mount a Carlton-style revolt over the threatened appointment of James Murdoch as chief executive, according to an analysis of the TV company's shareholder register.

Unlike in the Carlton case, where eight institutions controlled 35% of the company, institutions have much smaller stakes in BSkyB and therefore less leverage with the board.

Even the biggest 20 institutional shareholders control only 25% of the company and are still outgunned by News Corporation's 35.4% holding, according to an analysis in Shares magazine, which claims the appointment of James, 30, son of chairman Rupert, may be imminent.

There is no Fidelity, the US institution which led the revolt to unseat Michael Green at Carlton, to rally serious opposition to such an appointment. The biggest institutional shareholders are Legal & General and Barclays Global Investors, each with 3%. Institutions are deeply unhappy that the Murdochs may end up with the two top posts at BSkyB - a recipe for serious conflicts of interest.

The National Association of Pension Funds is expected to show its hand later today when it publishes its voting advice to members. James, who joined the board in February, comes up for election at the annual meeting next month.

The Trades Union Congress has waded into the affair, urging shareholders to vote against James Murdoch's appointment.