Comcast rounds up small shareholders in race for control of Sky

The US cable giant revealed this morning that it had already acquired 29.1pc of Sky following a sweep of the hedge funds that bought up large stakes before a record-breaking head-to-head auction at the weekend - AP

Comcast has appointed consultants DF King to round up small Sky shareholders as it attempts to pass the 50pc threshold required to seize control following its £29.7bn takeover offer.

The US cable giant revealed this morning that it had already acquired 29.1pc of Sky following a sweep of the hedge funds that bought up large stakes before a record-breaking head-to-head auction at the weekend.

Now Comcast is attempting to secure the roughly 3pc of Sky held by small retail investors. DF King specialises in soliciting shareholders in takeovers and AGM voting.

Sky’s biggest shareholder, 21st Century Fox, has remain silent on plans for its 39pc stake. Its offer in the in the auction fell significantly short of Comcast’s, which was immediately recommended to shareholders by Sky’s independent directors.

Disney has agreed to acquire most of Fox of $71bn and controlled its bidding in the auction. The fate of its stake in Sky is also in the hands of Disney chairman Bob Iger. He could choose to cash in, or attempt to parlay the shareholding into a aseparate deal involving Comcast’s 30pc stake in the US streaming service Hulu. Following its takeover of most of Fox, Disney will control 60pc of the venture.

Comcast will not be able to force Fox to accept its money for Sky. Under UK takeover rules minorities can only be “squeezed out” by a majority shareholder with a stake of more than 90pc.

Comcast is racing to hit the 50pc threshold regardless and hoping that Fox will tender in the coming day.

Aside from retail investors, the 29.1pc it has already acquired and Fox’s stake, a 14pc chunk of Sky is held by passive index funds that tend to be slower in tendering their shares. Hedge funds and active long-term investors are thought to hold the balance.