Murdoch is urged to raise bid for Sky

CALLS were last night growing for 21st Century Fox to increase its £11.7bn offer for British broadcaster Sky.

The US entertainment giant would pay 1075p per share under a takeover first proposed in December 2016.

But Sky shares surged higher than that yesterday, rising 21p to 1082p, after its success in the auction of Premier League rights.

It prompted analysts to speculate that Fox, controlled by media mogul Rupert Murdoch, would have to stump up more.

George Salmon, of Hargreaves Lansdown, said: ‘Sky looks much healthier than when 21st Century Fox first bid for the business.

‘In early trading the shares touched 1095p, 20p ahead of the price Fox has agreed to pay. This tells us Murdoch might need to come back with an improved offer.’

UBS agreed, saying the reduced price that Sky had secured its football rights for would probably boost earnings. Analyst Polo Tang said: ‘Materially higher levels of profitability at Sky could lead to shareholders seeking a higher offer price from Fox.’

Crispin Odey, a London-based hedge fund manager who has a stake in Sky, said: ‘It looks like [Fox is] not going to get it at the original price.’

The 59-year-old, who founded Odey Asset Management, said Fox was unlikely to succeed now without an offer of 1340p – a 23pc premium on their closing price yesterday. Sky declined to comment and 21st Century Fox could not be reached for comment.

It came as campaigners won the right to challenge in the High Court a regulator’s ruling that Fox was a ‘fit and proper’ potential owner of Sky.

Activists Avaaz said a judge agreed to hear arguments against Ofcom’s decision that allegations of sexual and racial harassment at Fox News in the US were serious, but not a cause to block the takeover.

It expects the case to be heard before the end of June. The challenge potentially complicates the deal, which Fox is keen to complete before it is taken over itself by Disney.