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A spinoff of News Corp.'s (NWS +5.3%) British newspapers is looking more likely as a way of...

A spinoff of News Corp.'s (NWS +5.3%) British newspapers is looking more likely as a way of defusing U.K. public hostility and keeping alive its hopes of eventually buying BSkyB. "Given how ugly this has all become, News Corp. has to do something," a banker says, and spinning off the British papers "seems like the most achievable option."
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