Sky limit

15 December 2016 By Fiona Maharg-Bravo

Some of the pay-TV operator’s investors grumble that independent directors were too eager to accept an 11 bln pound bid from Rupert Murdoch’s Fox. But Sky’s share price wasn’t obviously beaten up, and the premium is generous. A small bump is the best they can hope for.

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A British pensions body said on Dec. 13 it would scrutinise any potential deal between Twenty-First Century Fox and UK pay-TV firm Sky. “To ensure public shareholders are not disadvantaged, any takeover bid would need to be put to a shareholder vote and any recommendation by the board would have to be based on an appropriate premium as well as safeguards for future probity given past track records of the businesses controlled by the Murdoch family”, said Kieran Quinn, chairman of Britain's Local Authority Pension Fund Forum (LAPFF).

Fox made an offer for the 61 percent it doesn’t own of the UK pay-TV company on Dec. 9. The offer, which hasn’t been formalised, is worth 10.75 pounds per Sky share in cash and agreement had been reached on price by a committee of the group’s independent directors.

Thomas Moore, investment director at Standard Life, told the BBC on Dec. 12: “We would hope this is a starting bid and on reflection they will appreciate that a higher bid is more appropriate.” It echoes comments made by Jupiter Asset Management and Royal London Asset Management.

Sky shares closed at just under 984 pence on Dec. 14.

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