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| News Corp shares slide 7.6% on phone hacking arrest | |
| (40 minutes later) | |
| Shares in News Corporation, the company owned by Australian billionaire Rupert Murdoch, have dropped by 7.6% to a two-year low. | Shares in News Corporation, the company owned by Australian billionaire Rupert Murdoch, have dropped by 7.6% to a two-year low. |
| Shares touched A$13.65, their lowest point on the Australian Stock Exchange since July 2009. | Shares touched A$13.65, their lowest point on the Australian Stock Exchange since July 2009. |
| They later recovered slightly, to stand 3.79% down at A$14.21. Its shares have lost almost a fifth of their value since the start of July. | They later recovered slightly, to stand 3.79% down at A$14.21. Its shares have lost almost a fifth of their value since the start of July. |
| The slide comes as an investigation into phone hacking in the UK widens. | The slide comes as an investigation into phone hacking in the UK widens. |
| Analysts say the events of the past few days have caused major damage to the company, as 19% of its total value has evaporated. | 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] $10bn wiped off the value since the peak," said Stephen Mayne, director of the Australian Shareholders' Association. | |
| Widening probe | Widening probe |
| News Corporation is the parent company of News International, which runs the Sun, the Times and Sunday Times. Their sister paper, the News of the World, was shut down earlier this month as a result of the phone hacking scandal. | |
| 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). | |
| Her spokesman said she was still happy to appear before the UK Parliament's Culture, Media and Sport Committee on Tuesday. | |
| Rupert Murdoch, and his son James, the boss of News Corporation in Europe and Asia, are also to appear before the MPs. | |
| 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? | Leadership change? |
| News Corp's share price drop has fuelled the debate over whether there needs to be a management shakeup at the company. | News Corp's share price drop has fuelled the debate over whether there needs to be a management shakeup at the company. |
| Mr Mayne says independent directors at the firm have been discussing a change in leadership. | Mr Mayne says independent directors at the firm 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," he said. | "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," he said. |
| Although some reports suggest this may not be the case. | 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 taking place in an emailed response to Reuters news agency. | Tom Perkins, who is on the board of News Corp, denied that any such discussions were taking place in an emailed response to Reuters news agency. |