A better mousetrap

24 May 2018 By Jennifer Saba Follow @jennifersaba

The cable group is preparing to scuttle Disney’s $52.4 bln bid for some of Rupert Murdoch’s assets. A major Fox shareholder is receptive to the idea. But Comcast boss Brian Roberts needs more than the best price to get a hearing. He could start by offering a bigger break fee.

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Comcast said on May 23 it is in the advanced stages of preparing an offer for the businesses that Twenty-First Century Fox has agreed to sell to Walt Disney for $52.4 billion. Comcast’s offer would be all-cash and at a premium to the value of the all-share offer from Disney.

Additionally, any regulatory risk provisions and related termination fee would be at least as favorable as the Disney offer, Comcast said. Disney agreed to pay $2.5 billion if the deal does not close for regulatory reasons.

Activist investor Christopher Hohn of TCI wrote a letter to Fox Chairman Rupert Murdoch on May 23 asking him to “engage and welcome any Comcast proposal that offers a superior price to a transaction with Disney.” TCI holds a 7.4 percent stake in Fox.

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