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Sky urges shareholders to accept deal as Comcast outbids Fox

Mon, 24th Sep 2018 07:22

(Sharecast News) - Sky urged its shareholders on Monday to accept a takeover offer from US cable company Comcast after it outbid Rupert Murdoch's 21st Century Fox for the London-listed broadcaster.Sky said the Comcast offer of £17.28 represents an "excellent outcome" for its shareholders, at a premium of 125% to the closing price 6 December 2016, which was the last business day before Fox's initial approach. The price also represents a multiple of 15.5 times Sky's adjusted EBITDA for the 12-month period ended 30 June 2018.In an almost unprecedented auction held by the UK's Takeover Panel on Saturday, Comcast outbid Fox's £15.67 per share bid for Sky."As the price of the Comcast offer is materially superior, it is in the best interests of all Sky shareholders to accept the Comcast offer. "Accordingly, the Independent Committee unanimously recommends that Sky shareholders accept the Comcast offer, and in order to ensure the successful closing of the Comcast offer, and given the possibility of a delisting of Sky in the near future, urges shareholders to accept immediately."Liberum noted that Sky shareholders have until 11 October to accept the deal. "With the independent directors of Sky backing the deal and the premium to the share price close on Friday, it is almost inevitable that non-Fox shareholders will take the offer," it said."The more interesting question is what Fox (or Fox / Disney) does with its 39% stake. Technically, it does not have to accept, which would leave Comcast with a major shareholder that could act as an irritant if it so desired. In reality, we think Fox/Disney will sell its stake in the company - it is a windfall for Fox and, for Disney, there is no direct competition in Europe between it and Comcast in the pay-TV arena."Analyst Ian Whittaker said he does not expect a significant amount of change for Sky. "It is very unlikely Comcast will look to rebrand Sky, it has pledged to keep Sky News and there is visibility on the major football contracts. Comcast is likely to take Sky's expertise in areas such as technology and customer service back to the United States to help with its operations there."
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10 Oct 2016 13:30

Monday broker round-up

(ShareCast News) - Easyjet: Societe Generale downgrades to sell with a target price of 820p. BP: Barclays reiterates overweight, 600p target. Lloyds: Citigroup keeps at sell with a 48p target. Unilever: Jefferies reiterates hold with a 3530p target. Royal Dutch Shell: Barclays keeps at overweight

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6 Oct 2016 15:15

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29 Sep 2016 15:03

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27 Sep 2016 16:15

CORRECT: LONDON MARKET CLOSE: Banks, OPEC Talks Hit "No-Trump Jump"

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27 Sep 2016 10:31

Sky boosted by Kepler Cheuvreux upgrade

(ShareCast News) - Sky got a boost on Tuesday as Kepler Cheuvreux upgraded the stock to 'buy' from 'hold' saying its discounted cash flow-based fair value of 1,100p suggests nearly 30% upside from current levels, which is the highest in its large-cap media universe. The bank noted the stock has dro

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27 Sep 2016 09:33

WINNERS & LOSERS SUMMARY: Wolseley Sold Amid Job Cuts, No Extra Payout

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21 Sep 2016 07:58

Newspaper round-up: BoJ, RBS, BHP Billiton, Hinkley contract bonanza

(ShareCast News) - The Bank of Japan has launched an unprecedented new kind of monetary easing as it set a cap on 10-year bond yields and vowed to overshoot its 2 per cent inflation target on purpose. Its decision demonstrates that even eight years after the global financial crisis, central bankers

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21 Sep 2016 07:58

Newspaper round-up: BoJ, RBS, BHP Billiton, Hinkley contract bonanza

(ShareCast News) - The Bank of Japan has launched an unprecedented new kind of monetary easing as it set a cap on 10-year bond yields and vowed to overshoot its 2 per cent inflation target on purpose. Its decision demonstrates that even eight years after the global financial crisis, central bankers

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20 Sep 2016 15:01

Sky And ITV Take Equal Stakes In eSports Channel Ginx TV

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19 Sep 2016 09:43

WINNERS & LOSERS SUMMARY: Mitie Shares Drop 25% After Profit Warning

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19 Sep 2016 08:33

Morgan Stanley ups Sky to 'overweight', says it's oversold

(ShareCast News) - Morgan Stanley upgraded Sky to 'overweight' from 'equalweight' but cut the price target to 1,000p from 1,025p saying the stock was oversold. It noted that structural fears have pushed the shares down 25% year-to-date so that it now trades at about 9% of estimated 2018 free cash fl

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19 Sep 2016 07:19

LONDON BRIEFING: Shares Firm Ahead Of US, Japan Central Bank Decisions

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18 Sep 2016 16:31

Sunday newspaper round-up: Fed, China, Glencore, Diageo, National Grid

(ShareCast News) - Traders are betting that the US Federal Reserve will stand pat on interest rates this week, despite warnings that rising inflationary pressures could persuade the US central bank to hike. The Sunday Times reported that investors were assuming the flurry of weaker-than-expected eco

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18 Sep 2016 16:31

Sunday newspaper round-up: Fed, China, Glencore, Diageo, National Grid

(ShareCast News) - Traders are betting that the US Federal Reserve will stand pat on interest rates this week, despite warnings that rising inflationary pressures could persuade the US central bank to hike. The Sunday Times reported that investors were assuming the flurry of weaker-than-expected eco

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