The United Kingdom’s Panel on Takeovers and Mergers ruled this morning that The Walt Disney Company will need to bid on an acquisition of Sky depending on the timing of their Fox deal. Basically, if Fox’s purchases of Sky isn’t completed by the time Disney closes their purchase of 21st Century Fox assets, Disney will need to place their own bid for the broadcaster. As Deadline reports, Disney would have 28 days from the completion Fox deal to make their offer, which much at least match Fox’s £10.25 a share offer. There is also the chance that Comcast’s a £12.50 per share offer for Sky might be accepted, negating Disney’s requirement to bid. However, Fox says that they believe their deal with Sky will close by June 30th, 2018. If that does turn out to be the case, it would more than likely put that acquisition ahead of Disney’s asset purchase. In any case, the Panel on Takeovers and Mergers said, “Disney will be required to make a mandatory offer to the holders of ordinary shares in Sky pursuant to Note 8 on Rule 9.1 of the Takeover Code as a result of Fox’s stake of approximately 39% in Sky. The basis for this ruling is that, in accordance with paragraph (b) of Note 8 on Rule 9.1, the Executive considers that securing control of Sky might reasonably be considered to be a significant purpose of Disney’s acquiring control of Fox.”
