Advisory groups back Disney’s bid for Fox

TWO influential shareholder advisory groups, ISS and Glass Lewis, have recommended 21st Century Fox shareholders accept Disney’s $71bn (£54bn) bid over the rival offer tabled by Comcast.

Disney’s offer is higher than Comcast’s, at around $38 per share compared to $35 per share.

It had made the first move to buy the Murdoch assets, including Fox’s Sky stake, in December, but sweetened that offer last month after Comcast lodged its formal bid.

Shareholders will be asked to vote on the Disney deal at a meeting on July 27, and both ISS and Glass Lewis recommended they approve the motion.

Glass Lewis said the Disney deal offers “a unique, prospectively far-reaching opportunity to aggregate a collection of established properties, distribution channels and growth alternatives”.

ISS added that, while the initial sales process was “suboptimal, as the company’s apparent preference towards a deal with Disney clearly failed to extract maximum value for shareholders”, the current deal now represents “compelling value”.