BSkyB share price: CEO believes some Sky Deutschland shareholders may sell stakes

on Oct 17, 2014
Updated: Oct 21, 2019
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iNVEZZ.com, Friday, October 17: British Sky Broadcasting Group Plc (LON:BSY) may see bigger-than-expected support from Sky Deutschland’s minority shareholders for its bid for the German business, according to Jeremy Darroch, the UK company’s chief executive officer.

Earlier this year, BSkyB agreed to acquire 57 percent in its sister company from 21st Century Fox for £2.9 billion, or €6.75 a share, as part of a larger deal. The company extended the offer to the minority investors, but Sky Deutschland’s supervisory and executive boards advised them not to accept, saying that it undervalued the business ().

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However, Darroch believes that with the recent bout of weakness on the stock markets, some minority investors might be having second thoughts about keeping their shares.
“I wouldn’t be surprised if we get a lot more take up and I think the volatility we are seeing is probably making people reflect on that,” Darroch told reporters after the release of BSkyB’s first-quarter financial report.

In today’s trading, BSkyB shares were down 0.6 percent at 845.00p as of 14:58 BST. Sky Deutschland’s shares were up 0.5 percent at €6.73 in Frankfurt as of 14:37 BST.
**Sky Europe**
The acquisition of Sky Deutschland is part of BSkyB’s efforts to create a pan-European pay-TV operator, by combining with the German company and Sky Italia. The combination will result in a pay-TV business with more than 20 million subscribers across Europe.

Darroch said that BSkyB could achieve its plan even without additional support from the holders of the remaining shares in Sky Deutschland.
“We are very happy at 57 percent and we think we can do all the things we need to do in the business with that, and we’ll see how many trade in,” he said.

**Analysts on BSkyB**
According to the Financial Times, the 17 analysts offering 12 month price targets for BSkyB have a median target of 965.00p, with a high estimate of 1,170p and a low estimate of 610.00p. As of October 10, 2014, the consensus forecast amongst 40 polled investment analysts covering BSkyB suggests that investors should hold their position in the company. The same consensus estimate has been maintained since the sentiment of investment analysts deteriorated on January 12, 2012, the FT notes.
**As of 15:25 BST buy BSkyB shares at 845.50 pence**
**As of 15:25 BST sell BSkyB shares at 845.00 pence**

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