Former son-in-law Crispin Odey tells Rupert Murdoch to pay more for Sky Deutschland
Tuesday 13 May 2014
The hedge fund manager Crispin Odey has thrown down the gauntlet to BSkyB by saying that the British pay-TV firm’s plan to take over Sky Deutschland “significantly understates” the value of the €6bn (£5bn) German company.
Mr Odey’s intervention has a personal twist as he is the former son-in-law of Rupert Murdoch, whose 21st Century Fox is the biggest investor in BSkyB and Sky Deutschland.
Sky Deutschland shares soared almost 10 per cent yesterday, after BSkyB confirmed it is looking at a takeover of both Sky Deutschland and Sky Italia to create a £20bn-plus European pay-TV giant.
Analysts reckoned this showed BSkyB was likely to have to pay extra for Sky Deutschland – despite BSkyB reportedly insisting the German company’s share price must remain “undisturbed”.
Mr Odey holds considerable sway over Sky Deutschland as his firm Odey Asset Management holds 8 per cent.
“The current proposal, a nil-premium takeover of the minorities of Sky Deutschland, significantly understates the value of the company,” Odey Asset Management said.
BSkyB shares fell 21.5p to 868.5p as the City worried a deal could be fraught with problems.
The move to create a “Sky Europe” has long been rumoured as Mr Murdoch would like to inject the British company’s market-leading expertise into the less successful European operations.
BSkyB said: “At the right value, this combination would have the potential to create a world-class multinational pay-TV group.” But the company said talks were at a preliminary stage and “no agreement has been reached on terms, value or transaction structure”.
Fox holds 39 per cent of BSkyB, about 57 per cent of Sky Deutschland and 100 per cent of Sky Italia. BSkyB is valued £14bn and Sky Italia could be worth around €4bn to €5bn, according to Bloomberg.
City observers worried that BSkyB’s growth and margins could be dragged down by expanding in Europe. But UBS said a deal could be “strategically positive”.
Mr Murdoch tried to take full control of BSkyB in 2010, but aborted plans because of the phone-hacking scandal.
Mr Odey, who used to be married to Mr Murdoch’s daughter Prudence, is thought to have an amicable relationship with the media mogul. During the BSkyB takeover, Mr Odey also argued its share price was undervalued.
- 1 New Zealand 'the best country to work as a prostitute', says sex worker advocacy group
- 2 Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
- 3 Mother 'will allow son's circumcision in return for release from prison'
- 4 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
- 5 Female Muay Thai champion hustles coaches to give them a beating
Purity balls: Girls in the US making virginity pledges as fathers vow to 'protect purity'
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Female Muay Thai champion hustles coaches to give them a beating
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
Warren Buffett thinks the poor should stop blaming inequality on the rich
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...