Sunday, June 26, 2011

Murdoch faces sky high price for BSkyB

One of the largest investors in BSkyB is urging News Corporation to pay an extra �4bn to assume total ownership of the company, reports the Sunday Times.

Crispin Odey, founder of Odey Asset Management, believes the satellite broadcaster is worth �19bn. If that's the case, Rupert Murdoch's company would need to pay �11.6bn for the 61% of shares it does not already own.

Another fund manager, Fidelity, has valued BSkyB at just a little less.

These calculations come days before Jeremy Hunt, the culture and media secretary, is expected to give the go-ahead for the takeover, subject to a further consultation.

News Corp made a �7.8bn offer for BSkyB a year ago. It has agreed to place one component of the company, Sky News, into a separate entity in order to allay concerns over media plurality.

Should Hunt grant approval for the takeover, News Corp has two months to strike a deal.

Sources: Sunday Times/The Guardian


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Source: http://www.guardian.co.uk/media/greenslade/2011/jun/26/britishskybroadcastinggroup-rupert-murdoch

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