BSkyB’s takeover plan for Sky Deutschland understates the firm: Crispin Odey
Hedge fund manager Crispin Odey has argued that British pay-TV firm British Sky Broadcasting's (BSkyB's) plan to takeover Sky Deutschland significantly "understates" the value of the German company.
BSkyB recently confirmed that that it was in talks to acquire 21st Century Fox's German & Italian satellite broadcasting businesses to create a top-notch multinational pay-TV group. The British pay-TV firm is reportedly ready to pay around £8 billion to acquire the business in question.
Mr. Odey, who owns 8 per cent stake in Sky Deutschland through his firm Odey Asset Management, said, "The current proposal, a nil-premium takeover of the minorities of Sky Deutschland, significantly understates the value of the company."
However, Mr. Odey's intervention is being seen as a personal twist as he is the ex son-in-law of Rupert Murdoch, who is the biggest stakeholder in BSkyB as well as Sky Deutschland.
Fox owns 39 per cent stake in BSkyB, nearly 57 per cent stake in Sky Deutschland and 100 per cent stake in Sky Italia. As per fresh estimates, BSkyB has a market value of around £14 billion, while Sky Italia could worth in the range of _4 billion to _5 billion.
Following Mr. Odey's comments, some analysts said BSkyB would likely have to pay extra to acquire Sky Deutschland.
Stock in BSkyB slipped 21.5p to 868.5p per share as investors worried that a potential deal could be fraught with various problems.