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Coulson, Prime Minister David Cameron's communications director from 2007 until January this year, was arrested on July 8. Murdoch's hope of making BSkyB a wholly owned part of his News Corp. empire collapsed on Wednesday in the face of what Cameron called a "firestorm" that has engulfed media, police and politicians. Cameron has appointed a judge for a wide-ranging inquiry into the News of the World scandal and wider issues of media regulation, the relationship between politicians and media and the possibility that illegal practices are more widely employed in the industry. "It clearly goes beyond News International," Clegg said. "It is clearly something much more systemic," Clegg said. "I don't think we should allow ourselves to believe that it is just because of the Murdochs, or Rebekah Brooks, or it's all about one commercial transaction, however significant." Shares in BSkyB steadied Thursday, rising 0.6 percent to 709.5 pence ($11.43) in early trading in London. The shares closed higher on Wednesday for the first time since they began falling sharply last week amid fresh phone hacking allegations. The News Corp. bid for BSkyB unraveled with stunning speed after the Guardian newspaper reported that the News of The World had hacked into the phone of teenage murder victim Milly Dowler in 2002 and may have impeded a police investigation into the 13-year-old's disappearance.
Jill Lawless and Raphael Satter in London contributed to this report
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