Shares in Manchester United fell heavily yesterday on fears that the Monopolies and Mergers Commission would block a billion-dollar take-over bid by BSkyB for the top Premier League soccer club.
The Office of Fair Trading was last night accused by ministers of being connected to an alleged leak of the MMC report into the controversial £624 million bid.
Citing sources close to the Department of Trade and Industry in London, the Daily Telegraph said the Monopolies and Mergers Commission (MMC) had ruled that the proposed £623 million sterling ($1.01 billion) take-over was not in the public interest.
The MMC completed a five-month inquiry into the bid by BSkyB, 40 per cent owned by Mr Rupert Murdoch's News Corp, last week. Its report has gone to the British Trade Secretary who must ultimately decide whether the deal can proceed.
Shares in Manchester United fell almost 9 per cent to 218-1/2p by late afternoon, while BSkyB dipped almost 2 per cent to 5401/4p. Other stock market listed soccer clubs also suffered falls.
The DTI declined to comment on the speculation and added that nothing had been placed in the public domain. The Trade Secretary, Mr Stephen Byers, is expected to announce his ruling in the next three or four weeks.
Opposition Conservative trade spokesman, Mr John Redwood, called on Mr Byers to set up an urgent inquiry into the possible leak.
The proposed deal sparked heated protests from many in the game who argued that it would concentrate too much power in the hands of BSkyB, which has the current rights to live coverage of English premier league matches.
Feelings also ran high over the "Murdoch factor", with critics angry that the media magnate, who owns four British newspapers, could control one of Britain's favourite soccer team.
The Daily Telegraph said the MMC reached its conclusion despite undertakings from both companies designed to ensure that BSkyB's ownership would not give it an unfair advantage when negotiating broadcast rights for soccer matches.
The MMC report was understood to question whether these undertakings, including measures to prevent Manchester United tipping off its parent about rival bids for broadcasting rights, would be enforceable in practice.
The original BSkyB bid for Manchester United, one of the richest soccer clubs in the world, has now lapsed and would have to be resubmitted if it gets the green light from the government.
