Sky Deutschland tells investors to shun Sky Europe takeover bid
THE BOARD of Sky Deutschland has advised its minority shareholders not to accept the takeover offer from BSkyB, claiming the bid “does not reflect the full potential and thus intrinsic value” of Sky Deutschland.
BSkyB agreed in July to buy the 57 per cent of Sky Deutschland owned by 21st Century Fox, as part of its £4.9bn Sky Europe takeover of Sky Deutschland and Sky Italia, and offered remaining shareholders €6.75 per share.
The German company yesterday published a statement arguing the offer fell short of its true value.
“For this reason and considering the aforementioned explanations in this statement, the management board… cannot recommend the acceptance of the offer,” it said, adding that it realised: “the strategic rationale of a closer alignment of the businesses of BSkyB, Sky Deutschland and Sky Italia and the potential benefit of the combined scale.”
BSkyB said: “We note the statement by Sky Deutschland and we welcome their supportive comments on the strategic rationale for the transaction. There is no minimum acceptance to our offer and we look forward to completing the acquisition of Sky Italia and a majority of Sky Deutschland later this year.”