Sky Deutschland AG's supervisory and executive boards have
advised shareholders not to accept a takeover offer by British Sky
Broadcasting Group PLC, a week after the European Union approved
the deal.
In a statement Wednesday, the board said the offer "doesn't
reflect the long-term potential nor the internal value of Sky
Deutschland."
Sky Deutschland also said that Chief Executive Officer Brian
Sullivan, the only board member holding shares, wouldn't
participate in the offer, which runs until Oct. 15.
In May, BSkyB said it planned to acquire Fox's 100% stake in the
Italian TV company Sky Italia for GBP2.45 billion ($3.98 billion),
with GBP2.09 billion of that in cash. The U.K. company also said it
would buy 21st Century Fox's 57.4% stake in Sky Deutschland AG for
GBP2.9 billion in cash, valuing the German business at GBP6.75 a
share. At the time, BSkyB also offered GBP6.75 a share to Sky
Deutschland's remaining minority shareholders, but BSkyB Chief
Financial Officer Andrew Griffith said the company was "neutral"
about buying out those holders.
21st Century Fox was until June 2013 part of the same company as
News Corp, owner of The Wall Street Journal and Dow Jones
Newswires.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
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