Sky pulls support for Murdoch bid as Comcast confirms
offer
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[April 25, 2018]
By Paul Sandle
LONDON (Reuters) - Sky withdrew its
recommendation of Rupert Murdoch's contested bid for the European pay-TV
group after rival Comcast <CMCSA.O> submitted a higher, 22 billion-pound
($31 billion) cash offer on Wednesday.
UK-based Sky, with more than 20 million customers for its sports,
entertainment and news channels across Europe, is at the center of a
three-way battle for control between Murdoch's Twenty-First Century Fox
<FOXA.O>, Walt Disney <DIS.N> and Comcast and their veteran bosses.
Sky's independent directors said they welcomed Comcast's 12.50 pound per
share bid and would now engage with both Comcast and Fox. They cautioned
that neither bid could yet be put to shareholders and advised them to
take no action for now.

Fox first announced its 10.75 pound per share offer in December 2016 but
the deal has been held up concerns about the influence Murdoch could
wield over public opinion through owning all of the broadcaster as well
a clutch of UK newspapers.
The proposed combination has been further complicated by Fox's agreement
to sell many of its TV and film assets to Disney, including its 39
percent stake in Sky.
On Wednesday, Sky said it welcomed Comcast's firm intention to bid for
it, as well as commitments the U.S. cable giant had made to address
potential public-interest concerns over Sky News, its influential
24-hour news channel.

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A woman walks past the NBC and Comcast logos on 30 Rockefeller Plaza
in midtown Manhattan in New York, U.S., February 27, 2018.
REUTERS/Lucas Jackson/File Photo

"As a result of the announcement of this higher cash offer, the Independent
Committee is withdrawing its recommendation of the offer announced by 21CF on 15
December 2016 and is now terminating the co-operation agreement entered into
with 21CF on the same date," Sky said in a statement.
Sky shares rose 4.1 percent to 13.62 pounds by 1107 GMT - well above the offer
price, implying that some shareholders anticipated a bidding war.
Fox said it remained committed to its cash offer for Sky and was considering its
options.
Hedge fund Elliott has taken a stake of almost 3 percent in Sky, according to
its latest filing, and other shareholders have argued that Disney's $52 billion
agreement to buy Fox implies a higher value for Sky.

Comcast said it was "delighted" to be formalizing its bid for Sky, for which it
had secured a bridge loan of up to 16 billion pounds and a term loan credit
agreement of up to 7 billion pounds.
"We have long believed Sky is an outstanding company and a great fit with
Comcast," Chief Executive Brian Roberts said in a statement. "Sky will be our
platform for growth across Europe."
(Writing by Georgina Prodhan; editing by Sarah Young)
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