Sky share price: Hargreaves Lansdown expects more drama in battle for group

Comments come as Comcast launches rival bid for pay-TV provider

Sky share price: Hargreaves Lansdown expects more drama in battle for group

Hargreaves Lansdown has flagged more drama in the battle for Sky (LON:SKY), Citywire reports. The comments came after US cable company Comcast approached the UK group with a takeover offer, above the one which the pay-TV provider has already accepted by Rupert Murdoch’s Twenty-First Century Fox.

Sky’s share price rallied in the previous session following the offer, adding 20.50 percent to close at 1,331.50p. The group’s shares have added a little over 35 percent to their value over the past year.

Analyst flags more drama

Citywire reported yesterday that Hargreaves Lansdown’s analyst Laith Khalaf had weighed in on Comcast’s bid for Sky, saying that the latest auction of rights to broadcast football’s Premier League had ‘moved the dial’ for the FTSE 100, which recently secured more games at a lower cost.

“The fact that Sky shares were already trading at 30p above Fox’s offer price tells us the market was expecting an improved offer from somewhere,” the analyst pointed out, adding that with Sky’s shares trading two percent above Comcast’s £12.50 per share price, “the market clearly smells the scent of some more action before this saga draws to a close”.

21st Century Fox committed to deal

Fox meanwhile said in a statement that it remained ‘committed’ to its recommended cash offer for Sky. The company recently pledged to keep Sky News independent as it looks to assuage competition concerns over the proposed tie-up.

The FTSE 100 group said in a separate statement that its independent directors are “mindful of their fiduciary duties and their obligations under the UK Takeover Code”.

“Since no firm offer has been made at this point, shareholders are advised to take no action,” the pay-TV provider pointed out.

As of 07:52 GMT, Wednesday, 28 February, Sky Plc share price is 1,331.50p.

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