UK Takeover Panel confirms Walt Disney would have to offer at least 1,400p a share to buy satellite TV broadcaster Sky

Walt Disney Co. (NYSE:DIS) would have to offer at least 1,400p a share to buy satellite TV broadcaster Sky PLC (LON:SKY) the UK’s takeover regulator confirmed on Friday.

In a statement on its website, the Takeover Panel said that a review had confirmed its initial ruling in 13 July 2018 of the level of a possible mandatory Disney offer for Sky.

READ: Sky bid saga continues as satellite broadcaster agrees to increased £24.5bn Fox offer

The panel’s hearings committee subsequently examined that decision on July 27 after the regulator said that “various interested parties affected by the ruling” had asked for a review.

However, Disney would only be forced to make such an offer if it completes a deal to buy Twenty-First Century Fox Inc’s (NASDAQ:FOX) TV and film assets, which include a 39% stake in Sky, before either Fox or rival suitor Comcast Inc (NASDAQ:CMCSA) have managed to take control of the FTSE 100-listed broadcaster.

The outcome of that bid battle is still in the balance, with Sky last month having agreed to a Comcast cash offer pitched at 1,475p per share, which trumped Sky’s previously agreed bid of 1,400p a share, an increase from its initial 1,075p a share offer pitched in December 2016 which became mired in a regulatory clearance battle only completed last month.

Sky’s share price still seems to indicate that there could be a further twist in the bid saga, with the stock changing hands at 1.513.50p each in late trading on Friday.

READ: Disney shareholders give the green light for its acquisition of Fox’s entertainment division

In June, Disney launched a US$71.3bn offer for Twentieth Century Fox’s film and TV assets as well as the US cable networks and regional sports channels, trumping a US$65bn deal tabled by Comcast earlier that month.

Disney looks set to win that battle having got approval already from shareholders and US anti-trust authorities, although further regulatory approval is still required.

Story by ProactiveInvestors