NEW YORK (AP) — News Corp.’s stock continued a modest upswing Thursday with no major developments in the phone hacking scandal that so far has forced closing of a tainted British tabloid, scuttled a major corporate transaction, led to a series of arrests in the U.K.
THE BACKGROUND: News Corp. is in crisis following allegations that the company’s News of the World tabloid hacked into the phones of murder and terrorist victims, British politicians, celebrities and others in pursuit of scoops. In recent weeks, the company has shut News of the World and abandoned its bid to take full control of the lucrative British Sky Broadcasting network. The deal had been under review by the U.K. government.
Ten people have been arrested in connection with the scandal, including Andy Coulson, the former News of the World editor who became communications chief for British Prime Minister David Cameron, and Rebekah Brooks, who resigned Friday as head of News International, News Corp.’s British newspaper unit. The scandal has put Cameron on the defensive and raised serious questions about whether London’s Metropolitan Police did enough to investigate phone hacking allegations when they first arose several years ago. Scotland Yard is also facing questions of whether police accepted bribes to give tips to reporters.
THE HEARING: News Corp.’s shares have crept upward since Chairman and CEO Rupert Murdoch, his son James and Brooks testified before the British Parliament earlier this week. At the hearing, the Murdochs were contrite and offered apologies to the British people.
SHARE ACTION: News Corp. shares rose 55 cents, or 3.4 percent, to $16.97 Thursday. The stock is up more than 10 percent from Monday’s close at $15.40. But it still 6 percent below its June close at $18.08.