Murdoch latest: govt to block BSkyB bid as 'cover-up' emerges

Rupert Murdoch's takeover of BSkyB appeared to be dead in the water last night after proof emerged that executives at his British newspaper empire mounted a cover-up of the full scale of alleged criminal wrongdoing at the News of the World.

The Independent reports Government lawyers are drawing up a strategy to halt the £9bn deal which looked a certainty only a week ago.

A senior government source told the paper: "We are working on a plan to suspend the deal while the police investigation is taking place. But we have to ensure it doesn't get thrown out by judicial review." MORE...

The development comes as News International (NI) executives are facing demands to appear before MPs to answer allegations they suppressed evidence of widespread illegal activity at the News of the World.

The Telegraph said the company is under mounting scrutiny following revelations that an internal inquiry in 2007 gathered 'smoking gun' emails showing that several of its journalists were hacking mobile phones and making payments to police officers. MORE...

Among those set to be questioned are Les Hinton. The Guardian said Rupert Murdoch's lifelong lieutenant and closest adviser faces questions over whether he saw the internal NI report before he testified to a parliamentary committee that the practice was limited to a single reporter. MORE...

Meanwhile, the Times reports Rebekah Brooks will be among those to be interviewed.

The chief executive of NI is expected to be questioned formally as a witness. MORE...