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UK takeover panel confirms ruling for Fox's Sky bid

Staff Writer |
The UK takeover regulator has ruled that Disney could have to offer at least £14 a share to buy satellite broadcaster Sky.

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Presuming Disney completes its agreed acquisition of 21st Century Fox, the Takeover Panel confirmed its ruling that, under the "chain principle", Fox will be obliged to make a bid of £14 within 28 days per Sky share. Fox already owns 39% of Sky.

The chain principal price is designed to reflect the level of the offer Disney is making for Fox, and its holding in Sky.

Sky directors have recommended a £14.75-per-share bid from another US media group, Comcast, while Fox and Disney have made a bid of £14 but have reserved their option to increase the offer level at any point before a 46-day deadline, which would be 22 September.

After conducting a number of appeal hearings after making its initial chain principle ruling on 3 August, the panel confirmed that Disney's offer need not be made if by then Fox has acquired 100% of the shares in Sky or Comcast or any other third party has acquired more than 50% of such shares.

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