Comcast to pay advisers as much as 243 million pound in fees for Sky takeover

[July 14, 2018]   By Ben Martin

LONDON (Reuters) - Comcast <CMCSA.O> expects to pay the banks, law firms and other advisers on its 25.9 billion pound ($34.23 billion) bid for Sky <SKYB.L> as much as 243 million pounds if it wins the battle for the British broadcaster, the U.S. cable giant said on Friday.

Sky is at the center of a complex trans-Atlantic bidding war between Twenty-First Century Fox <FOXA.O>, Comcast and Walt Disney <DIS.N> that will generate large fees for advisory firms working on all sides.

Fox, which already owns 39 percent of Sky, and Comcast are fighting for control of the British pay-television group. At the same time, Comcast and Disney are vying to buy the bulk of Fox's film and TV assets, including its Sky stake.

Comcast expects to pay its advisers between 203 million pounds and 243 million pounds in total for their work on the Sky bid, the U.S. group estimated in its formal offer document for the British company on Friday.

The lion's share of the fees -- up to 170.3 million pounds -- will go to the lenders, including Bank of America, that are co-ordinating the financing for Comcast's offer.

The cable giant will also pay between 22.7 million pounds and 37.8 million pounds to the firms that are providing it with financial advice.

They include the boutique Robey Warshaw, the small business founded by investment bankers Sir Simon Robey, Simon Warshaw and Philip Apostolides in 2013 and which is based in London's upmarket Mayfair district.

The Sky logo is seen on outside of an entrance to offices and studios in west London, Britain June 29, 2017. REUTERS/Toby Melville/File Photo

In addition, as much as 24.1 million pounds will go on Comcast's legal fees.

Meanwhile, Sky expects to spend between 88.6 million pounds and 95.9 million pounds on advice and other expenses relating to the Comcast offer, the document shows.

The broadcaster estimates it will pay Barclays, Morgan Stanley, and boutique firm PJT Partners between 59.5 million pounds and 61.5 million pounds for their financial advice, according to the Comcast document. Legal advice will cost it between 15.2 million pounds and 20 million pounds.

Comcast said in the document that its 14.75 pounds per share offer to Sky shareholders was open until 1300 London time on Aug. 22, although it said it could extend the acceptance period

It lifted its bid for Sky on Wednesday after Fox sweetened its rival offer to 14 pounds per share earlier that day. Sky's independent directors have recommended the Comcast offer.

Sky shares closed down 0.6 percent at 15.35 pounds.

The stock is trading above the level of the Comcast offer amid speculation that Fox will make a higher counterbid. Fox is yet to publish its offer document.

(Reporting by Ben Martin, editing by Louise Heavens)

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