SPACE WIRE
James Murdoch vows to win over sceptical BSkyB shareholders: report
LONDON (AFP) Nov 05, 2003
James Murdoch has embarked on a charm offensive to try to allay investors' concerns about his appointment as chief executive of British pay-TV giant BSkyB, insisting he was at the "sharp end" of the selection process despite his father being chairman, the Financial Times reported Wednesday.

Murdoch, the second son of media mogul Rupert Murdoch -- whose US group News Corporation owns 35.4 percent of BSkyB -- is facing a storm of criticism from powerful institutional shareholders after being picked Monday to run Britain's 19th biggest company despite being just 30 years old.

But in an interview with the Financial Times, the younger Murdoch insisted he would prove his mettle, saying: "You are going to judge me in time on the results."

He added: "One of the first things I'm doing is trying to meet with a number of our shareholders and start a dialogue and listen to their concerns.

"Now this (appointment) has happened, I intend to explore with them the concerns they have."

Murdoch also rebuffed suggestions that nepotism had influenced the process of selecting a replacement for Tony Ball, whose departure was announced in September, noting that the group's non-executive directors had backed the choice.

"As far as the process is concerned, I can only point you to the non-executives. They took their responsibilities very seriously," he said.

"We worked with one of the most respectable search firms in the world. I was on the sharp end of the process. I can tell you it was taken very seriously by everyone."

Murdoch, who has run his father's Asian network Star TV for three years but has little other corporate background, also sought to assuage worries among major shareholders that BSkyB's cash might be siphoned off for other News Corp. businesses.

"We don't have any plans or strategies to run off and do this and that in terms of acquisitions or supporting projects," he said.

BSkyB, which returned to profitability in its last financial year for the first time for five years, would also consider resuming dividend payments after a five-year gap, he added.

"There is a resolution at the board to discuss future dividends and that will be done," he told the paper.

SPACE.WIRE