Share Prices & Company Research

Press Release

21 September 2018

Auction brings two-year battle for Sky to an end

Roy Kaitcer, Investment Manager at investment management and stockbroking firm Redmayne Bentley, said: “The Takeover Panel has finally taken decisive action to bring the ongoing battle for Sky to an end.

“Unless a winner emerges by 5pm today (Friday 21st September), the bidding war between 21st Century Fox and Comcast will be settled by a three-round auction.

“Sky’s independent directors are recommending Comcast’s higher offer of £14.75 a share to shareholders, in comparison with Fox’s current bid of £14 a share.

“However, Fox currently owns 39% of Sky and only needs to persuade another 12% of the board to vote in its favour, compared to the 51% Comcast will require.

“Since Fox made its first bid for Sky, it has agreed to sell a major part of the business – including its 39% share – to Walt Disney, which would then take full ownership of Sky once it has taken over Fox’s assets. On the other hand, a victory for Comcast would make it the biggest pay-TV provider in the world.

“To win this battle would be a boost to both Comcast and Disney as they undertake a wider battle against internet-based services such as Amazon and Netflix.”

Ends

Please note that this article is for information only and does not constitute a recommendation to buy or sell any of the stocks mentioned.
 
 
Auction brings two-year battle for Sky to an end
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