Murdoch under pressure to step down

RUPERT Murdoch looks set to come under pressure to step down as chairman of BSkyB as the price for installing his younger son James as chief executive of the satellite broadcaster.

James Murdoch, 30, will be the youngest chief executive of a FTSE 100 company if, as expected, he replaces Tony Ball, 47, who is due to quit next May.

The proposed appointment has worried investors who fear that Murdoch, 72, will tighten his grip on BSkyB just as it starts to make big profits and reinstates its dividend.

They fear cash may be used for acquisitions rather than being paid to investors. Murdoch's News Corporation is the biggest investor in BSkyB.

City sources suggest Murdoch might move aside from his role as chairman to allay investors' concerns.

One said: 'It would be feasible, after all he's only been chairman for three years and he doesn't especially like being chairman of his subsidiary companies.'

Robert Talbut, chief investment officer of fund manager Isis, a BSkyB investor, said: 'Sky is rapidly turning into a cash machine and the issue is whether that cash is going to be used for the benefit of all shareholders.'