Fears over Sky News as vultures build stake

BILLIONAIRE Paul Singer’s ruthless hedge fund has increased its stake in Sky as the future of the broadcaster’s news channel hangs in the balance.

The move by Elliott Capital Advisors comes little over a week after it emerged its 1.1pc stake has increased to 1.86pc, according to regulatory filings.

The activist fund is one of the most ruthless operators in Wall Street and its decision will stoke fears for Sky News. The channel is the barrier to 21st Century Fox’s planned £ 11.7bn takeover of Sky, due to regulator concerns it would give Fox chairman Rupert Murdoch too much influence over the UK media.

Senior sources at Sky have warned this could cause hedge funds, which have built stakes in Sky and want a quick profit, to aggressively push for a firesale of Sky News or for the channel to shut down.

Elliott has declined to comment so far. Last night Sky also declined to comment. Options being considered for its news channel, which employs about 500 people, could involve giving it ‘firewall’ protections from Murdoch’s influence or putting it into an independent trust.