The tide looks to be turning against Murdoch's bid which has now been referred to the Competition Commission following withdrawal of the concession to sell Sky News. It seems to be another feint by Murdoch as he sees one path closing to him (through the House of Commons) preferring instead to engage with the Competition Commission.
It also seems likely that a Commons vote will take place with all sides seeming to come out against the takeover boosted by new revelations from Gordon Brown which implicate the Sunday Times and the Sun with similar malpractice.
Various Government instigated inquiries are also underway amidst Police allegations of non-co-operation from News International during previous inquiries.
BSkyB also confirmed that it has been notified by the takeover panel that it is no longer in a formal offer period as the News Corp bid has been referred for review by the Competition Commission
The price has now dropped back below Murdoch's initial bid and most seasoned investors look to be falling back onto BSkyB's fundamental valuation as a stand alone company.
On its own merits (BSkyB: week ahead and take-over musings), and lets not forget why Murdoch wants to buy BSkyB, there looks to be some mileage left in terms of growth but there is a very steadily increasing dividend as well, as the company starts to generate returns on its strategy of investment to grow its customer base.
No knowing where this story will run now but considering BSkyB on its own merits could yet yield handsome dividends once the uncertainty over its future has run its course. Hmmm.
Related articles:
- thescotsman.scotsman.com: City in a whirl over BSkyB's future
- www.sharecast.com: Embattled News Corp to buy back $5bn shares
- www.sharecast.com: BSkyB tumbles as News Corp takeover in doubt
Earlier posts:
- Smoke and mirrors: BSkyB, and The News of the World!
- BSkyB: week ahead and take-over musings
No comments:
Post a Comment