Marketwatch: Shadow of Murdoch over Sky results

A THREE-DAY trading week will have little affect on the volume of news with BSkyB and Whitbread among the major firms reporting.

Satellite broadcaster Sky is expected to again post strong trading figures on Thursday - but analysts fear the good results will be overshadowed by the takeover approach from Rupert Murdoch's News International.

Sky hit its long-standing ten million subscribers target at the end of 2010, two months ahead of schedule. Paul Numis, media analyst at Numis Securities, said: "For a long time people have been asking 'when and how much', as far as a News International offer is concerned.

"It's bound to overshadow the actual third-quarter trading figures this week. We still think it is a done deal despite the political controversy around News International. Probably at a minimum of 850p a share."

News International had a mooted offer price of 700p-a-share turned down by Sky's independent directors a year ago. Thursday's market close was 835p. Some institutional investors are said to be holding out for a price of more than 950p-a-share. The media tycoon is bidding for the 61 per cent of BSkyB does not already own.

On the trading front, Richards said he expected Sky, where Murdoch's son, James, is executive chairman, to have added a further 51,000 subscribers between January and March this year.

Whitbread is set to report a 20 per cent rise in profits in its full-year results on Thursday after a strong performance from its Premier Inns and Costa coffee brands.

Like-for-like sales across the group increased 6.7 per cent in the 50 weeks to 17 February as it benefited from a resurgence in consumer spending and invested in advertising its brands.

Analysts forecast that underlying profits will rise to 286 million in the year to 3 March, while dividend payments are expected to increase 13 per cent to 43p.

Barclays is facing a potential row with investors at its AGM on Wednesday after a major investor group flagged up fresh concerns about its proposals for executive pay.

The Association of British Insurers (ABI), whose members control about 15 per cent of the stock market, has issued a so-called "amber top" alert warning that investors should closely scrutinise the bank's remuneration report.

The ABI has raised concerns about plans to pay new chief executive Bob Diamond 1.35m - 20 per cent more than his predecessor John Varley received. Barclays also plans to pay Diamond a bonus of up to 3.4m and he is entitled to receive shares worth 6.75m as part of a long-term incentive scheme.