21st Century Fox decides to reach for the Sky

THE US company owned by Rupert Murdoch, 21st Century Fox has indicated to the directors of Sky PLC that it would be interested in making a bid to take over the entire company (of which it currently holds just 39 per cent) at a price of £10.75 (€12.80) per share less the value of any dividend paid and the Sky board has indicated that it would recommend that shareholders accept such an offer.

Perversely, a statement from Sky did however go on to say “However, certain material offer terms remain under discussion and there can be no certainty that an offer will be made by 21st Century Fox, nor as to the terms of any such offer.”

Shares immediately shot up by 32 per cent as soon as the announcement was made although there may be a great deal of quick profit taking if investors think that the deal could fall through, as an originally proposed deal did five years ago following the ‘phone tapping’ scandal.