News Corp blow for Andersen

RUPERT Murdoch's News Corporation has dumped accountancy firm Andersen from all consulting roles in the wake of its controversial role in the demise of US energy giant Enron.

Chief financial officer David DeVoe said the company would continue to use Andersen as its auditor but it would not be considered for any consulting contracts. Andersen has also faced allegations of improper practice in its work for Australian insurer HIH, which collapsed last year.

News Corp today posted a US$606m (£432m) loss for the three months to December. Despite taking a $235m write-down on Germany's Kirch Media, Murdoch ruled out swapping debt for an equity stake in the group, which is labouring under $5bn of debts.

News Corp also reported a pre-tax loss of US$300m on the sale of its stake in Italian pay TV group Stream to Vivendi Universal and wrote down the value of its US sports contracts by US$909m.