More Rumors on DirecTV Sale

[Gregg Lengling]

More speculation surfaced on News Corp.'s bid to
acquire DirecTV, this time coming from British
sources.

The Observer newspaper reported that the media
giant was poised to make a $7 billion bid for
Hughes Electronics and DirecTV as early as this
week. The news sent News Corp.'s stock down
more than 6 percent to $25.25.

The Observer also reported over the weekend that
News Corp. Chairman Rupert Murdoch was expected
to set up a new company - partly owned by Liberty
Media and controlled by News Corp.'s Fox
Entertainment Group - to take control of DirecTV.

The news follows money moves made by News Corp.
and Liberty last week. News Corp. announced a
$1.5 billion, 20-year bond issue while Liberty
said it's planning to offer $1.75 billion in
20-year senior debentures convertible into
AOL Time Warner shares.