Murdoch's companies 'shown favouritism'

Rupert Murdoch's companies were shown favouritism during a bid to take over a British telecommunications company, it has been claimed.

Ed Richards, who is stepping down as head of the UK's communications industry regulator Ofcom, said he was surprised at how informal relations were between government ministers and News Corp executives during its failed attempt to takeover BSkyB in 2011.

"What surprised everyone about it - not just me - was quite how close it was and the informality of it and the extent to which it featured certain companies a lot more than others," he told the Independent.

"There was a widespread concern about the balance."

Ofcom recommended the proposed deal be referred to the Competition Commission because of fears it concentrated too much media power in the hands of a single company.

News Corp went on to abandon its takeover bid as controversy grew over the now closed-down News of the World's hacking of murdered schoolgirl Milly Dowler's phone.