Shares of News Corporation tumbled by over 7 per cent on the Australian Stock Exchange today as the crisis emanating from a phone hacking scandal in the UK widened for the billionaire Rupert Murdoch-led media conglomerate.
The scrip, which opened at 14.59 Australian dollars, lost momentum and soon fell by 7.58 per cent to touch an intra-day low of 13.65 Australian dollars.
It later recovered slightly to 14.14 Australian dollars, down 4.13 per cent from the previous close.
According to market analysts, New Corp’s counter fell after investigating agencies widened their probe against the now-closed News of the World newspaper, part of News Corp group, in connection with the phone hacking scandal in the UK.
Yesterday, ex-News International Chief Executive, Ms Rebekah Brooks, was arrested by the police in the UK on suspicion of conspiring to intercept communications and on suspicion of corruption. Later, she was released on bail.
Ms Brooks is the tenth person to be arrested so far over the scandal, which exploded earlier this month amid claims that under her watch, the News of the World hacked the phone of a murdered girl, Milly Dowler.
Meanwhile, Britain’s top police officer resigned due to speculation about his links to Murdoch’s empire and the force’s botched investigation into phone hacking at the News of the World.