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Sky suitors auction to decide takeover by end of week

Thu, 20th Sep 2018 10:00

(Sharecast News) - An auction to decide the buyer of Sky will be decided by Saturday evening after the battle between 21st Century Fox and Comcast reached a stand-off.A process, which has been agreed by all parties, will consist of up to three rounds of open or sealed bids starting at 1700 BST on Friday 21 September and concluding by the evening on 22 September.Acting for Fox, which currently owns 39% of Sky, will be Disney, after the Mickey Mouse company agreed to acquire a host of entertainment assets from the Rupert Murdoch owned group.On 11 July, Fox announced a cash offer of £14.00 per Sky share, with Comcast coming back later that day with a cash offer of £14.75 per share.The UK takeover panel said that as neither Fox nor Comcast has declared their offer as final, it had established an auction procedure to resolve the situation, consisting of a maximum of three rounds.In the first round, only the offeror with the lowest offer as at the commencement of the auction may make an increased bid, though in the event of both offers being at the same price, the last offeror to revise.In the second round, only the offeror that was not eligible to make a bid in the first round may make an increased bid - even if no increased bid was made in the first round by the other offeror.If no increased bid is made in the second round, there will be a final round, in which both sides increase their bid, with each additionally permitted to make its offer subject to the condition that the other offeror also makes a bid in the final round.Only fixed price cash bids in pounds sterling can be made, with formula bids not permitted in any round. There is no requirement that an increased bid must be higher by any minimum increment than the other offeror's bid, although it must be higher than the last bid made by the offeror making the increased bid.Since Fox first bid for Sky almost two years ago Sky's share price has risen from 769p in December 2016 to 1,580p overnight.UBS analysts suggested investors see upside of 1600-1700p if an auction ensues. "At a mid-point of 1650p for the upside, the current share price implies a c60% probability that Disney/Fox will counter Comcast with a higher offer."Analyst Polo Tang estimated that pro-forma leverage for both Comcast and Disney/Fox will be 2.5x/2.4x respectively in 2019if they win. "An increase in the Sky offer price to 1600p would only increase leverage by 0.1x for either bidder and a deal would still be accretive to EFCF."Laith Khalaf at Hargreaves Lansdown said: "It's anyone's guess which media giant will walk away with Sky, and at what price."With the share price standing around £1 higher than the best offer currently on the table, he cautioned that the final bidding process "isn't something you can accurately model with a spreadsheet, and the final price agreed may ultimately prove the market wrong, for better or worse", which puts shareholders in a "deal or no deal quandary, wondering whether to take what's currently on offer by selling shares in the market, or holding out for more from the bidding process".

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12 Dec 2016 10:25

Fox's Sky takeover faces major political obstacles, analysts say

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11 Dec 2016 17:28

Sunday newspaper round-up: Brexit challenge, US rate hike, Sky revolt, RBS

(ShareCast News) - Another legal spanner has been thrown into the works of the government's Brexit plans, with a High Court challenge to attempt to prevent the UK from pulling out of the European single market. The Sunday Times reported that claimants, including Peter Wilding of the British Influenc

9 Dec 2016 16:10

21st Century Fox launches all cash offer for Sky

(ShareCast News) - Sky agreed to a take over by US media giant 21st Century Fox at a price of 1075p per share in cash, for a 36% premium on the shares' closing price as of 8 December. That translated into an £11.2bn offer for the 61% of Sky which Rupert Murdoch's Fox did not already own. Any divide

29 Nov 2016 21:20

Sky launches mobile service into £15bn UK market

(ShareCast News) - Sky said it will launch its mobile service in the UK next month with 46,000 customers already pre-registered for what some analysts said will be a quick money-spinner for the broadcaster, though others foresaw problems. The service, via a virtual mobile network operator model usin

29 Nov 2016 08:31

LONDON MARKET OPEN: BT Down, Sky And TalkTalk Up On Openreach Decision

22 Nov 2016 12:18

EXTRA: UK Telecoms Providers Welcome Hammond's Fibre Network Plans

22 Nov 2016 10:12

Credit Suisse reviews European media stocks; downgrades Pearson

(ShareCast News) - Credit Suisse updated its ratings and initiated on stocks in the European media sector. The Swiss bank upgraded RELX from 'neutral' to 'outperform' and bumped up the price target to 1,600p from 1,370p. It said the company's high-quality assets with market-leading positions have le

22 Nov 2016 09:56

Tuesday broker round-up

(ShareCast News) - BT Group: UBS reiterates neutral with a target price of 400p. Tesco: JP Morgan reiterates underweight with a 135p target. Relx: Credit Suisse stays at outperform with a 1600p target. Pets at Home: HSBC reiterates buy with a 320p target. Royal Dutch Shell B: UBS starts coverage

18 Nov 2016 14:47

Premier League agrees bumper £560m Chinese TV rights deal

(ShareCast News) - Chinese streaming service PPTV will pay as much as £650m to show Premier League games over the next three years, in what will be the football competition's largest ever overseas broadcast deal. PPTV is a unit of Suning Holdings Co, who bought a majority stake in Italian football g

18 Nov 2016 10:18

PRESS: Sky And BT Chiefs Play Down Chance Of Football Bidding War - FT

25 Oct 2016 15:01

DIRECTOR DEALINGS: Sky Non-Executive Director Ups Interest

14 Oct 2016 09:46

Friday broker round-up

(ShareCast News) - Acacia: Jefferies keeps at buy with a target price of 610p. Tesco: HSBC reiterates hold, 195p target. Weir: UBS downgrades to neutral with a 1830p target. Sky: HSBC reiterates hold with a 820p target. Playtech: UBS keeps at buy with a 1060p target. Jupiter: JP Morgan keeps at

14 Oct 2016 09:15

Sky shareholders protest reappointment of James Murdoch

(ShareCast News) - Over 50% of independent Sky investors voted against the return of James Murdoch as chairman at the annual general meeting (AGM) on Thursday, over concerns about board independence and the phone-hacking scandal. Despite that, the appointment went through after the company's largest

13 Oct 2016 07:06

Sky makes strong start to financial year

(ShareCast News) - Subscription broadcaster and broadband provider Sky posted an update to its first quarter trading on Thursday, with group revenue up 7% to £3.1bn and like-for-like revenue up 5%. The FTSE 100 firm reported positive growth in all markets, with revenue in the UK and Ireland up £101m

12 Oct 2016 14:40

Wednesday broker round-up

(ShareCast News) - Shire: Goldman Sachs keeps at buy with a target price of 6300p. Page Group: HSBC reiterates hold, 385p target. McCarthy & Stone: UBS keeps at sell with a 150p target. Arrow Global: Macquarie reiterates outperform with a 335p target. Electrocomponents: Citigroup keeps at neutral

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