Vince Cable told undercover reporters he had “declared war on Rupert Murdoch” and planned to block his efforts to take full control of BSkyB, according to the BBC’s Robert Peston.
The business secretary’s admission came in conversation with Daily Telegraph reporters posing as constituents.
Robert Peston said the Telegraph chose not to publish the “most explosive” part of its investigaton.
But a transcript was passed to him by a whistleblower.
According to the transcript seen by the BBC’s business editor, Mr Cable said: “I am picking my fights, some of which you may have seen, some of which you may haven’t seen.
“And I don’t know if you have been following what has been happening with the Murdoch press, where I have declared war on Mr Murdoch and I think we are going to win.”
News Corporation, which is run by Rupert Murdoch, already owns 39% of BSkyB but wants to buy up the remaining 61%.
The group also owns News International – whose publications The Sun, News of the World, The Times and The Sunday Times account for a third of the UK’s national newspaper circulation.
Mr Cable ordered Ofcom to investigate the proposal over concerns about press freedom and consumer choice – but he will have the final say and has stressed the need to be politically impartial.
The BBC News Channel’s chief political correspondent Laura Kuenssberg said the revelation would be “uncomfortable” for Mr Cable and could lead to questions about his future.
BSkyB has declined to comment on Mr Cable’s remarks.
In the transcript, Mr Cable tells the undercover reporter:
“Well I did not politicise it, because it is a legal question..but he (Mr Murdoch) is trying to take over BSkyB – you probably know that.”
The reporter says: “I know vaguely”.
Cable: “With considerably enhanced…”
Reporter: “I always thought that he had BSkyB with Sky anyway?”
Cable: “No, he has minority shares and he wants a majority – and a majority control would give them a massive stake.”
“I have blocked it using the powers that I have got and they are legal powers that I have got. I can’t politicise it but from the people that know what is happening this is a big, big thing.
His whole empire is now under attack…So there are things like that we do in government, that we can’t do…all we can do in opposition is protest”.
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