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| News Corp share slide almost 6% on phone hacking arrest | News Corp share slide almost 6% on phone hacking arrest |
| (about 2 hours later) | |
| Shares of News Corporation, the company owned by Australian billionaire Rupert Murdoch, have dropped almost 6% to a two-year low. | Shares of News Corporation, the company owned by Australian billionaire Rupert Murdoch, have dropped almost 6% to a two-year low. |
| The slide comes as an investigation into phone hacking in the UK has widened and a key figure was arrested. | The slide comes as an investigation into phone hacking in the UK has widened and a key figure was arrested. |
| News Corp owns the two newspapers at the heart of the scandal, The Sun and the now closed News of the World. | News Corp owns the two newspapers at the heart of the scandal, The Sun and the now closed News of the World. |
| In afternoon trading in Sydney, the shares were down 5.5% at 13.91 Australian dollars (£9.20). | |
| Its shares have lost almost a fifth of their value since the start of July. | Its shares have lost almost a fifth of their value since the start of July. |
| Analysts say the events of the past few days have caused major damage to the company, as 19% of its total value has evaporated. | |
| "You're now looking at [about] 10 billion dollars wiped off the value since the peak," said Stephen Mayne, director of the Australian Shareholders' Association. | |
| Widening probe | Widening probe |
| News Corp is the parent company of News International, which runs The Sun, the News of the World, The Times and Sunday Times. | News Corp is the parent company of News International, which runs The Sun, the News of the World, The Times and Sunday Times. |
| On Sunday, ex-News International chief executive Rebekah Brooks was arrested by police in the UK on suspicion of conspiring to intercept communications and on suspicion of corruption. | On Sunday, ex-News International chief executive Rebekah Brooks was arrested by police in the UK on suspicion of conspiring to intercept communications and on suspicion of corruption. |
| Mrs Brooks has denied wrongdoing and was released on bail at midnight (2300 GMT). | Mrs Brooks has denied wrongdoing and was released on bail at midnight (2300 GMT). |
| In another twist, Metropolitan Police Commissioner Sir Paul Stephenson stepped down for his part in the phone hacking scandal. | In another twist, Metropolitan Police Commissioner Sir Paul Stephenson stepped down for his part in the phone hacking scandal. |
| Sir Paul, Britain's most senior police officer, was criticised for hiring former News of the World executive Neil Wallis - who was questioned by police as part of the probe into hacking - as an adviser. | Sir Paul, Britain's most senior police officer, was criticised for hiring former News of the World executive Neil Wallis - who was questioned by police as part of the probe into hacking - as an adviser. |
| Leadership change? | |
| Today's drop has fuelled the debate over whether there needs to be a management shakeup at News Corp. | |
| Mr Mayne says independent directors at the company have been discussing a change in leadership. | |
| "The shareholder pressure, particularly today's tumultuous fall on Australian markets after the amazing developments over the weekend, is clearly showing that this is a gathering storm." | |
| Although some reports suggest this may not be the case. | |
| Tom Perkins, who is on the board of News Corp, denied that any such discussions were ongoing in an emailed response to Reuters news agency. |