Rupert Murdoch
Rupert Murdoch, owner of News Corp which in turn owns BSkyB, was accused by British MPs of not being fit to run a major international company (Reuters)

BSkyB shares rose in London trading despite a damning report from British MPs labelling the owner of majority shareholder News Corp, media baron Rupert Murdoch, as "not a fit person to exercise the stewardship of a major international company".

Murdoch is accused of "wilful blindness" in his handling of the phone hacking scandal engulfing his newspaper business News International by a newly released Culture, Media, and Sport Select Committee report.

"On the basis of the facts and evidence before the Committee, we conclude that, if at all relevant times Rupert Murdoch did not take steps to become fully informed about phone-hacking, he turned a blind eye and exhibited wilful blindness to what was going on in his companies and publications," said the 121-page report.

BSkyB stock was up 1.25 percent to 686.50 pence a share on the London Stock Exchange at 14:30 GMT.

News Corp, BSkyB and Ofcom

News Corp owns 39 percent of BSkyB and is also the subject of a probe by broadcasting regulators Ofcom, who are investigating if it is a "fit and proper" holder of a British broadcasting license.

Murdoch had hoped to wholly buy BSkyB with News Corp and made a takeover bid, but faced serious political and public opposition in the wake of the hacking and police bribery scandal involving his other media businesses.

News Corp subsequently withdrew its bid and Ofcom opened it investigation.

James Murdoch, Rupert's son, stood down as chairman of BSkyB in early April, but remains on the board as a non-executive director. He was also chairman of News International during the phone hacking scandal, but stood down in February.

The select committee report accused him of "wilful ignorance"

Ofcom has said that his standing down as chairman of BSkyB will not affect its final decision on whether to revoke the company's broadcasting license.

However it did welcome the select committee report.

"We note the publication of the Culture, Media and Sport Committee report, which we are reading with interest," an Ofcom spokesperson said.