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Rupert Murdoch's 21st Century Fox just bid to takeover British pay-TV giant Sky

Dec 9, 2016, 22:11 IST

Rupert Murdoch, Executive Chairman News Corp and Chairman and CEO 21st Century Fox speaks at the WSJD Live conference in Laguna BeachThomson Reuters

LONDON - Rupert Murdoch's 21st Century Fox has tabled a takeover bid for Sky at £10.75 ($13.52) a share.

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21st Century Fox already owns 39% of Sky and Murdoch has long coveted a full takeover. His previous, £8 billion attempt, was derailed by the phone hacking scandal in 2011.

Sky announced the takeover approach in a stock exchange update on Friday afternoon. The statement said Sky and Fox's independent directors had "reached agreement on an offer price" of £10.75 a share.

It added: "Certain material offer terms remain under discussion and there can be no certainty that an offer will be made by 21st Century Fox, nor as to the terms of any such offer."

The offer represents a 40% premium on Sky's closing share price of £7.69 on 6 December, Sky said. This was the day before Fox made its approach. Sky said its independent directors would be happy to recommend Fox's offer to shareholders after terms have been agreed. Sky's shares rocketed 26.66% to £10 on Friday.

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