Disney must bid for Sky, takeover umpire rules

Disney must bid for Sky, takeover umpire rules

But it said that the ruling would not stand if Fox's deal for Sky is approved and goes through before Disney acquires Fox assets, or if rival Sky bidder Comcast acquires a stake of more than 50pc in Sky. However, it also means they have a likely bidder for the business and a price floor should the Fox takeover be blocked by United Kingdom regulators and if Comcast doesn't formalize its proposed £12.50 per share offer for Sky.

Disney must make an offer to buy Sky if its deal with 21st Century Fox is completed before Fox's takeover of Sky, which is still being reviewed by the United Kingdom competition watchdog. Separately, Fox has been trying to win regulatory and shareholder approval for an agreement to consolidate its ownership of Sky, by buying the 61% it doesn't already own.

The CMA is now weighing up whether to recommend Fox's deal for Sky to Culture Secretary Matt Hancock, who must decide to either approve or block it.

Disney had said it did not believe it should be required to make a bid for the whole of Sky in line with Fox's existing offer if it bought the Fox assets.

Earlier this month, 21st Century Fox said the Walt Disney Company is interested in buying United Kingdom -based Sky News regardless of whether its $52.4 billion deal for certain Fox assets goes through.

Shares in Sky were trading marginally lower at 1,310.50 pence Thursday morning in London. The country's antitrust regulator-The Competition and Markets Authority-in January provisionally ruled the Fox offer against the public interest on media plurality grounds. Disney must make a full offer for Sky when it closes its Fox takeover and if the Fox deal for the rest of Sky doesn't close before then and if no other company, including Comcast, buys a controlling stake in Sky first.

Earlier in April, Fox proposed two remedies to address plurality concerns voiced by United Kingdom mergers regulator the Competition & Markets Authority.

"At this stage, Sky Shareholders are advised to take no further action".

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