Investors in revolt over Sky bid price

A MAJOR Sky shareholder has said it will vote against the takeover bid as it stands from 21st Century Fox, joining growing criticism among investors that the offer is too low.

On Friday Sky announced it had reached agreement with Rupert Murdoch’s 21st Century Fox on a cash offer of £10.75 per share – described by one observer as ‘the bargain of a lifetime’.

Fox said the offer, which values the company at £18.7bn, represented a 40pc premium to Sky’s share price last Tuesday.

But investors noted shares were worth that much as recently as February, and that Sky should fight for a higher price.

‘We are voting against the deal if it comes out in its current form and we have told the company as such,’ said one investor who declined to be named but said it was one of Sky’s top 50 owners.

‘The independent directors have absolutely failed minority shareholders.’

Another shareholder reportedly spoke of its ‘serious disappointment’ that Sky had ‘rolled over like this’.

The two firms have stressed there was no certainty a deal would be struck, but Sky’s independent directors said they had agreed to recommend the takeover approach to shareholders.

Alastair Gunn, a fund manager at Jupiter Asset Management, said shareholders should ask for a higher premium. The deal on the table ‘isn’t even above the year’s high for the stock,’ he added.

Rumours had been mounting that Murdoch would make a fresh swoop for the UK-based satellite broadcaster after his attempt to launch a takeover through News Corporation was thwarted in 2011.

The company - which owns The Sun and The Times - was forced to abandon its plans after becoming embroiled in the phone-hacking scandal involving News International.

Sterling’s 16pc plunge against the US dollar in the wake of the Brexit vote has made UK firms prime takeover targets for international companies.

Media analyst Claire Enders said it was a deal waiting to happen, adding: ‘This is the bargain of a lifetime.’