Fox raises Sky bid in battle with Comcast

Rupert Murdoch’s 21st Century Fox yesterday increased its takeover offer for Sky, valuing the pan-European TV group at £24.5 billion and trumping Comcast’s rival bid, reports AFP from London.

21st Century Fox’s improved approach is for the 61 percent of Sky it does not own.

New York-listed 21CF raised its offer to £14 for each outstanding share, up substantially on a previous tilt that was pitched at £10.75.

Following the announcement, Sky’s share price was down 1.4 percent at £14.81, though above the improved offer with analysts betting on an extension to the bidding war.

“Fox coming back in for Sky isn’t a surprise in itself, but the fact the offer is slightly

behind what some had anticipated brings another twist,” said George Salmon, equity analyst at Hargreaves Lansdown.

“In fact, there’s every chance it might entice another counter from Comcast. That might explain why the shares still trade above the latest offer price.”

Fox’s new bid values the whole of Sky at £24.5 billion ($32.5 billion or 27.7 billion euros), beating an offer of £22 billion from US cable giant Comcast for the satellite TV group.

A statement issued Wednesday by Fox said: “Today, 21CF and the Independent Committee of Sky are pleased to announce that they have reached agreement on an increased... cash offer.”

 

Fox raises Sky bid in battle with Comcast

Rupert Murdochs 21st Century Fox yesterday increased its takeover offer for Sky, valuing the pan-European TV group at 24.5 billion and trumping Comcasts rival bid, reports AFP from London. 21st Century Foxs improved approach is for the 61 percent of Sky it does not own. New York-listed 21CF raised its offer to 14 for each outstanding share, up substantially on a previous tilt that was pitched at 10.75. Following the announcement, Skys share price was down 1.4 percent at 14.81, though above the improved offer with analysts betting on an extension to the bidding war. Fox coming back in for Sky isnt a surprise in itself, but the fact the offer is slightly behind what some had anticipated brings another twist, said George Salmon, equity analyst at Hargreaves Lansdown. In fact, theres every chance it might entice another counter from Comcast. That might explain why the shares still trade above the latest offer price. Foxs new bid values the whole of Sky at 24.5 billion ($32.5 billion or 27.7 billion euros), beating an offer of 22 billion from US cable giant Comcast for the satellite TV group. A statement issued Wednesday by Fox said: Today, 21CF and the Independent Committee of Sky are pleased to announce that they have reached agreement on an increased... cash offer.