BSkyB, News Corp And Shareholders Haggle Over Price Of Bid

News Corp may have got the regulatory nod to pursue its bid for BSkyB, but there is still plenty of haggling to be done over the price

News Corp chief Rupert Murdoch has offered 700p ($11.32) a share for the satellite TV provider, while BSkyB’s independent board has hinted it wants more than 800p. Since then, BSkyB’s value has soared to 831p at market close in London, making it a much loftier investment for News Corp. 

Adding to the upwards price pressure, some BSkyB holders have gone on record asking News Corp to pay 950p, or an extra £3 bn, reports Reuters.

News Corp president Chase Carey told Reuters the company is focused on getting through the regulatory transaction and said his company had already valued BSkyB fairly. ‘It’s troubling out there; some seem to have forgotten this stock was trading [around 500p] not too long ago,’ he said at an investor conference.

Not all is lost at News Corp if this deal doesn’t go through, though. Carey was quoted as saying if News Corp cannot get a deal with BSkyB, the company would pursue other options.

Source: Reuters

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