SHARES in BSkyB, the satellite broadcaster, have fallen sharply, for the second day running, as Mr Rupert Murdoch, confirmed plans to raise funds through a preference share issue convertible into BSkyB shares.
The stock dropped 36.5p sterling yesterday to 596.5p, and has now fallen 82p in two days - equal to £1.4 billion off the company's stock market value. Investors said the sale showed that Mr Murdoch believed the shares had reached their likely high, and that it was a good time to raise fresh funds to finance his other global media ventures.
There were fears, too, that BSkyB still faced regulatory threats over its near-monopoly position in the British pay-television market.
News Corp Ltd, the holding company of interests controlled by press tycoon, Mr Rupert Murdoch, said that it is to offer $1 billion worth of securities convertible into shares in BSkyB, the satellite broadcaster.
The funds are to be used to finance digital television development elsewhere in Mr Murdoch's global media empire.
News Corp said that the instruments being offered were interests in subordinated debt securities and warrants to purchase ordinary shares and US-traded stocks in BSkyB.
Mr Murdoch controls 40 percent of BSkyB.
News Corp added that it would not be required to deliver shares in BSkyB on exercise of the warrants, but that it may instead offer cash repayments to investors.
The securities would not be offered for sale to British investors, the company said.
