Yahoo Finance Comcast could be forced to raise Sky bid
The City’s takeover referee could force Disney or Comcast to pay a much higher price for Sky as their US bidding war over the Murdoch empire escalates.
The Takeover Panel is watching the unprecedented situation closely and has powers to demand more. Murdoch-controlled 21st Century Fox is selling most of its assets including its 39pc stake in Sky.
Disney has agreed to pay $71bn while Comcast is considering whether to respond with an even higher debt-fuelled bid.
Meanwhile, Comcast has also bid £22bn, or £12.50 per share, for Sky and must publish its formal offer to shareholders by July 13. Fox, which offered a £10.75 per share deal for full control of Sky 18 months ago, has yet to hit back and would require Disney’s approval to do so, if their US deal proceeds.
The lofty prices under discussion for the collection of Fox assets mean the panel could require a higher price for Sky from either side if it believes a US deal implies one.
Disney has so far been careful to refer only to the price originally proposed by Fox but the shares have now topped £14. Analyst Bruno Burki said the panel is not expected to rule until there is definitive agreement in the US, however, and that there may be a bidding war regardless.
