BSkyB pulls plug on meeting

THE senior non-executive director at BSkyB suddenly cancelled his meeting with leading shareholders over the satellite broadcaster's search for a new chief executive, inflaming tensions in the heated succession row.

Lord St John of Fawsley, who is in charge of the search for a replacement for Tony Ball, cited 'unforeseen circumstances' for scrapping the Thursday meeting with the powerful Association of British Insurers. The ABI said: 'Our confidence in the process is at a very low ebb.'

It is concerned that Rupert Murdoch, whose News Corporation holds 35% of Sky, is trying to shoehorn his younger son James into the chief executive position.

Shareholders fear Murdoch senior wants to funnel Sky's strong profits into other projects, instead of rewarding them for their support.

The ABI warned Lord St John last month that he faced a rebellion if the board acceded to Murdoch's wishes without undertaking a proper search.

It is furious that he has neither given a more detailed explanation for the cancellation nor sought to arrange another meeting. Codes of corporate governance demand he should be available to shareholders.

BSkyB declined to throw more light on the meeting's cancellation. It said: 'We cannot comment.'

City shareholders have long been worried about corporate governance at Sky and see the dispute over the succession as the last straw.

They are also taking it to task over long-standing bugbears such as a perceived lack of independence on the pay committee and potential conflicts of interest as auditors Deloitte & Touche advise on board pay.

Rupert Murdoch has unashamedly thrown his weight behind James. He was quoted as saying 'no one was more qualified to take over'.