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TRADE WARS
James Murdoch: heir apparent dogged by hacking scandal
by Staff Writers
London (AFP) April 3, 2012

James Murdoch.

From teenage rebel to prodigal son, James Murdoch surprised many observers when he rose to become the heir apparent to his father Rupert's global media empire.

But that gilded future is not so assured after pressure from a phone-hacking scandal in Britain forced the 39-year-old out of a second senior corporate position in the space of two months.

While continuing to deny that he had any knowledge that phone hacking was widespread at the now defunct News of the World tabloid, James Murdoch resigned as chairman of British pay-TV giant BSkyB on Tuesday.

He said he did not want his association with the scandal to become "a lightning rod" for the broadcaster -- and the lightning has followed him ever since the scandal broke last July.

In February he resigned as executive chairman of News International, the British newspaper wing of Rupert Murdoch's sprawling US-based News Corporation empire.

He also resigned his directorship at auction house Sotheby's last month and quit the board of pharmaceutical giant GlaxoSmithKline in January.

Meanwhile Murdoch's resignation from BSkyB, following months of pressure from shareholders, comes just weeks ahead of a report from the British parliamentary committee that twice questioned him last year over the scandal.

He also faces an investigation by Britain's broadcasting regulator into whether he is a "fit and proper" person to sit on the BSkyB board.

News Corp had said James Murdoch would focus on the company's international television operations after leaving News International -- but these will now have to exclude his father's British interests.

James is the fourth of Australian-born Rupert Murdoch's six children.

The 80-year-old mo1gul has a daughter from his first marriage, two sons -- Lachlan and James -- and a daughter from his second marriage and two daughters from his third marriage.

Today the Harvard-educated James wears glasses, sharp suits and short hair and is married to an American with whom he has three children.

But in his youth, he was considered a rebel with his earrings, baggy trousers and platinum blond hair.

After dropping out of Harvard University in 1995, he created his own hip hop label, "Rawkus," which was bought by News Corp. in 1998.

His elder brother Lachlan, 40, was once considered the successor to his father, who despite persistent speculation has shown no signs of stepping aside any time soon.

But Lachlan gave up his senior executive positions in News Corp. in 2005 amid disagreements with other company executives and moved to Australia.

James Murdoch's troubles at News International and a surprise appearance by Lachlan at his father's side renewed talk that the elder brother may once again be in the running to take over the family business.

Lachlan, rather than James, accompanied Rupert Murdoch during a visit to the newsroom of The Sun, another News International paper, in February during which it was announced that the Sun would be launching a Sunday edition.

James Murdoch joined News Corp. in 1996, working on digital media ventures and corporate development projects as an executive vice president based in New York.

He took over News Corp.'s Asian television group STAR in 2000 and served as chief executive of BSkyB from 2003 to 2007, making him the youngest chief executive in FTSE 100 history.

He then headed News International from 2007 until February.

In March of last year, James Murdoch was named News Corp.'s deputy chief operating officer, moving from London to New York to report to News Corp. deputy chairman, president and chief operating officer Chase Carey.

James was at his father's side when they both testified to British lawmakers last year and the elder Murdoch was hit in the face with a custard pie -- but it was Rupert's Chinese-born wife Wendi who leapt into the fray with a full-blooded swing at her husband's assailant.

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James Murdoch quits as BSkyB chairman
London (AFP) April 3, 2012 - James Murdoch resigned as chairman of British pay-TV giant BSkyB Tuesday, saying he did not want it to become a "lightning rod" for the hacking scandal at his father Rupert's media empire.

The post was the last major role held in Britain by James Murdoch, who has faced growing pressure over what he knew about the illegal accessing of voicemails at the now-closed News of the World newspaper.

The satellite broadcaster, which is 39 percent owned by Rupert Murdoch's US-based News Corp, announced that James would be replaced by deputy chairman Nicholas Ferguson.

He will stay on as a non-executive director of BSkyB, the company added.

"I am aware that my role as chairman could become a lightning rod for BSkyB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organisation," James Murdoch said in his resignation letter to the board.

"As attention continues to be paid to past events at News International, I am determined that the interests of BSkyB should not be undermined by matters outside the scope of this company," he said.

It is the second high-profile position relinquished by Rupert Murdoch's youngest son and one-time heir apparent in the past two months as the family struggles to contain the damage from the phone-hacking row.

The 39-year-old resigned as executive chairman of News International, the News Corp unit which published the News of the World, on February 29.

He remains deputy chief operating officer of News Corp, with a focus on television operations.

But Britain's broadcasting regulator Ofcom reportedly stepped up an investigation last month into whether James Murdoch was a "fit and proper" person to sit on the BSkyB board.

James Murdoch has strongly denied knowing about the widespread hacking of phones by the tabloid, which caused a major scandal last year.

There was public revulsion in Britain when it emerged that the News of the World had listened to the voicemails of Milly Dowler, a murdered English schoolgirl, as well as dozens of victims of crime, celebrities and politicians.

News Corp. responded by shutting down the 168-year-old News of the World, and it has since paid out millions of pounds in damages to victims.

As the scandal spiralled, the US-based company was also forced to withdraw a $12 billion (9.0 billion euros) offer for the 61 percent of BSkyB it does not already own.

After the news about James Murdoch's resignation broke, shares in BSkyB were at 675.5 pence, down 0.81 percent on Monday's closing price.

News Corp had bid 700 pence a share in 2011, although this was rejected by the company as too low.

Ferguson, the new chairman of BSkyB, said that the board's "support for James and belief in his integrity remain strong".

James Murdoch appeared twice before a British parliamentary committee last year as part of its investigations into phone hacking, and both times he denied knowing the practice went beyond a rogue reporter at the News of the World.

In a statement to the media committee on March 14 he also denied that he had misled parliament but apologised for failing to uncover wrongdoing earlier.

"Whilst I accept my share of responsibility for not uncovering wrongdoing sooner, I did not mislead parliament and the evidence does not support any other conclusion," he wrote.



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TRADE WARS
World Bank chief backs BRICS bank idea
Boao, China (AFP) April 3, 2012
Outgoing World Bank president Robert Zoellick on Tuesday gave his backing to a new development bank proposed by the leaders of the BRICS emerging countries. Zoellick said the World Bank would be prepared to work with the new financial institution, which was discussed by the leaders of Brazil, Russia, India, China and South Africa when they met in New Delhi last week. While the plans are ... read more


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