The Supervisory Board and Executive Boards of Sky Deutschland are recommending that shareholders reject the take-over offer from BSkyB.
Their statement says the offer of €6.75 per share “does not reflect the long-term potential” of the company. The executive board confirmed CEO Brian Sullivan, a former BSkyB staffer and only executive shareholder in Sky Deutschland, would not participate in the current offer which runs until October 15th. The bid was approved by the European Union last week.
The rejection echoes the position of the minority – but significant – shareholders who have said that BSkyB’s bid does not adequately compensate them for future earnings and profits. Sky Deutschland has not paid a dividend to date. The rejection is in part seen as a protecting the boards from legal action from these minority shareholders.