The culture secretary is seeking fresh advice from regulators on News Corp's takeover bid for BSkyB, amid the News of the World phone-hacking scandal.

Jeremy Hunt has written to Ofcom and the Office of Fair Trading (OFT) after the 168-year-old paper was shut down.

The implication is that Mr Hunt could now refer the deal to the Competition Commission, BBC business editor Robert Peston said.

Milly Dowler's parents are meeting Deputy Prime Minister Nick Clegg.

The murdered schoolgirl's phone was allegedly hacked in 2002 while she was still missing, and that revelation last week set in motion a train of events which ended with the closure of the News of the World (NoW).

Chief Secretary to the Treasury Danny Alexander told the BBC: "These are appalling crimes which seem to have taken place and the victims have an important role in this process."

The BBC understands former NoW editor Rebekah Brooks could be questioned by police as a witness, rather than a suspect.

Mrs Brooks, who has denied having had any knowledge of hacking while she was editor from 2000 to 2003, is now chief executive of the NoW's publisher News International, which is owned by News Corp.

Shares in BSkyB opened more than 6% lower on Monday and have dipped below the 700p offer price proposed last year by News Corp, when it expressed interest in bidding for the 61% of shares in BSkyB it did not own.

The chairman of the media select committee, Tory MP John Whittingdale, said the BskyB bid should be put on hold.

He said: "In the present atmosphere it's become so poisonous, it is very difficult for this takeover to proceed. The best thing would be if it could be put on hold until we have a much clearer idea of who knew what, who was responsible."

Mr Hunt will suggest the NoW closure is "a significant change to the media landscape", our correspondent said.