News Corp launches £7.8bn bid for BskyB
BksyB rejects initial bid but deal still likely to go through
News Corp has launched a £7.8 billion bid for a 61 per cent stake
The Rupert Murdoch-owned firm is looking to acquire the
remaining share of the company, as News Corp currently owns only
39.1 per cent of the broadcasting giant.
BskyB rejected the 700 pence per share offer, which was 17 per
cent higher than Monday's (June 14th) closing price, claiming it
undervalued the company.
Having consulted financial advisors UBS and Morgan Stanley,
BskyB said it would accept an offer of 800 pence per share.
A deal is still likely to go through, however, as both firms
agreed to co-operate in order to obtain the approval of regulators
and a mutually beneficial price for all shareholders.
Chase Carey, deputy chief operating officer at News Corp, said
in a statement: "We believe that this is the right time for BSkyB
to become a wholly-owned part of News Corp with its greater scale
and broader geographic reach."
News Corp made an initial 675 pence a share offer for BskyB last
week, although this was not made public until Tuesday (June 15th)