BSkyB: “Fair price is £9.50”
March 7, 2011
By Chris Forrester
Fidelity Investments, one of the smaller investors in BSkyB, says a fair price for its holdings would be 950p (€1.1) a share, and letting it be known that News Corp should dig deeper into its pockets and pay a big premium over the offer price of 700p already on the table. BSkyB’s share price was headed for £8.50 on March 7th .
Fidelity recently raised its holdings in BSkyB significantly at 760p a share. British stock exchange rules state that News Corp must win at least 75 per cent support for its take-over plans from the remaining 60.1 per cent shareholders. In other words holders of just 15 per cent of the BSkyB stock could completely block the deal. Four or five of the larger minority shareholders grouping together could therefore block the purchase.
Black Rock Advisors, a major Sky investor, is another looking for a premium payment, as are Odey Asset Mgt and Aegon. Odey is run by Crispin Odey who was once married to Rupert Murdoch’s eldest daughter Prudence.
Who owns BSkyB?
News Corp 39.1%
Black Rock Advisors 4.97%
Capital Research Global Inv. 3.89%
Legal & General 3%
Odey Asset Mgt 2.4%
Scottish Widows 2.2%
Fidelity Int’l 2.4%
Other minority shareholders Balance