News Corp shares fall sharply; whistleblower found dead
The escalating scandal takes its toll on Murdoch company's market cap. PLUS: Whistleblower found dead | Police investigate bag found in bin near Brooks' home.
News Corporation shares (NAS: NWS) were down nearly 5% in midday trading to $14.87, making it the worst-performing S&P 500 stock of the day, according to a Wall Street Journal report.
Early afternoon, the stock had recovered to $US15.49 a share, a 3.73% decline for the day.
News Corp. shares were at $US18.54 immediately before News of the World was closed on July 7.
The Rupert Murdoch-controlled company has lost around $US7 billion in market capitalisation since the tabloid was shuttered, and the phone hacking scandal began to escalate.
There were more sensational developments overnight.
Sean Hoare, the former News of the World reporter who first alleged editor Andy Coulson knew of the paper's phone hacking, was found dead in his Watford flat. Police said the circumstances of Mr Hoare's death were unexplained, but not suspicious.
Police revealed they were investigating a bag found in a bin near Rebekah Brooks' apartment. The bag contained a computer, paperwork and a phone. Ms Brooks - a former News of the World editor turned chief executive of News Corp's UK newspaper division - was arrested on Friday.
Metropolitan police assistant commissioner John Yates resigned. Metropolitan police commissioner, Sir Paul Stephenson, stepped down on Sunday.
And Prime Minister David Cameron was reportedly furious with Sir Paul, who made comments implying that the Metropolitan Police hiring Neil Wallis was no more improper than the Prime Minister hiring Andy Coulson as his communications director.
Mr Wallis was a former News of the World deputy editor; Mr Coulson a former editor at the tabloid.
It is alleged Mr Wallis was still receiving payments from News of the World while working for the police as a communications consultant.
NBR staff
Tue, 19 Jul 2011
Tue, 19 Jul 2011
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News Corp shares fall sharply; whistleblower found dead
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