Low response rate
After receiving only a few responses from its cash offer of £25.9 billion to buy Sky (LON:SKY), Comcast Corp, the US telecoms giant, has extended the deadline for shareholders who will now have until 1 pm GMT on September 12th. Reuters reported that valid acceptances had been received from just 0.21 per cent of Sky plc after its £14.75 per share offer to buy 61 per cent of the company.
As of 10.37 BST Sky’s share price stands at 1535.00p, up 0.033 per cent. In June, Shore Capital positioned Sky as a ‘hold’ following culture secretary, Matt Hancock’s confirmation that Comcast could bid for Sky and Fox could go ahead with the takeover, if it sells Sky News. USB had a buy rating on Sky while Liberum set it as a ‘hold’.
21st Century Fox battle continues
The news also comes as Comcast’s battle with 21st Century Fox to control Sky continues. Comcast currently has the highest bid of £14.75 per share, however, Fox, which owns 39 per cent of the broadcaster, has until September 22nd to respond with a better offer. On Monday, Reuters reported that Sky expected to pay its advisors between £90 - £97 million if 21st Century Fox succeeds with the takeover bid.