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Originally Posted by Horizon
But that would be all the other major shareholders as well as the 20% of votes on free float on the stock market. The likely hood that would happen is zero, especially if Murdoch made it clear it was against his wishes. I am not sure on this, but I think Murdoch still holds the majority of seats (4??)on the Sky board, so no motion can be put to the Sky board without his explicit consent. No consent, no vote.
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Shareholders can replace the board. That's what happens with hostile takeovers - the hostile party acquires enough shares to replace the board with one more amenable to the deal.
Quote:
Originally Posted by Horizon
The remaining old BSB shareholder's position has now been weakened further with the purchase of Murdoch fully controlled and owned Sky Italy and Sky Germany. I would expect Murdoch to now bid for the rest of the new Sky and take the company private.
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No it hasn't. The deal was specifically structured to ensure that Fox's shareholding in the combined entity was
not increased.
If Fox's shareholding increases they are obliged to make an offer for the rest of the shares as they hold over 30% of the company.
Where is Murdoch going to find the finance from to take the company private, and will the appetite be there for the inevitable regulatory investigations given events from last time?
Quote:
Originally Posted by Horizon
For those interested in how the shareholdings in media companies can actually work in the real world, should look up about the Murdoch/Malone tussle over News Corp. If you don't know about it, its very interesting and almost ended Murdoch's empire!
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Of course it's worth mentioning too the various poison pills set to make the company harder to perform a hostile takeover on, such as that all the company's debt fell due immediately upon a takeover. 30% of the voting share is considered effective control but it's not absolute control.
Whether Vodafone would have the appetite for such a hostile bid is quite different obviously. Whether Murdoch would be opposed if the right price were offered is likewise an interesting question.
I don't know and don't care to find out how well protected Sky is against hostile takeover.