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Fox Shareholder Files Lawsuit To Halt Proposed Disney Acquisition

12 July 2018

21st Century Fox is reportedly readying a new offer for Sky to fight off Comcast's rival $29 billion bid, which is all happening during Comcast's and Disney's fight over Fox.

But Fox may still face further competition from US cable giant Comcast which submitted its own bid for Sky in February, valuing the pan European group at 12.50 pounds per share. Rupert Murdoch's Hollywood studio has reached an agreement with Sky's Independent Committee for the higher offer at a price of £14 for each Sky share.

The suit aims to have the Fox-Disney merger enjoined on a preliminary basis, but if that doesn't occur, the shareholder would like to see the deal rescinded with an award of rescissory damages.

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Comcast has moved swiftly to table a £26bn offer to buy Sky, trumping Rupert Murdoch within hours of the media mogul tabling a new £24.5bn offer. Comcast has until the end of this week to make a new offer.

"We strongly believe that a combined 21CF and Sky will be a powerful driver for the continued growth and vibrancy of the United Kingdom and broader creative industries".

As Fox and Comcast duke it out over Sky, Comcast could be readying a new bid for Fox's entertainment assets. "The enhanced scale and capabilities of the combination will enrich Sky's ability to continue on its mission for years to come, especially at a time of dynamic change in our industry".

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Reuters is reporting that Comcast is doing it now so that Fox shareholders won't have antitrust concerns, plus increase their chances for uprooting Disney's bid.

However, British regulators have indicated that if Disney succeeds in buying Fox, including the 39 percent stake in Sky, it would be required to offer the same price for the remainder of Sky.

Martin Gilbert, deputy chairman of Sky, said that Comcast's offer represent an "attractive premium to the current alternative offer". The 39% stake in Sky now owned by Fox is part of that larger prize, and both Comcast and Disney see the pan-European pay-TV company as one of the most valuable elements of the deal.

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Fox Shareholder Files Lawsuit To Halt Proposed Disney Acquisition