Comcast, Fox Bidding War For Sky To End In Auction

(RTTNews) - The takeover battle by Comcast Corp. (CMCSK, CMCSA) and Rupert Murdoch's 21st Century Fox Inc. (FOX, FOXA) for British broadcaster Sky plc (BSY.L, SKY.L) will be settled through an auction.

The UK Takeover Panel said Thursday that an auction procedure is expected to commence on the evening of Friday, September 21, 2018 and end on the evening of September 22, 2018.

The winner of the auction, after a maximum of three rounds, will be announced on Saturday. However, it is very rare to settle a takeover of a high-profile public company through a takeover auction.

In the first round, only the offeror with the lowest offer as at the commencement of the auction may make an increased bid. In this case, 21st Century Fox can make an increased bid for Sky.

In the second round, Comcast, which was not eligible to make a bid in the first round, can make an increased bid for Sky.

If the auction procedure has not concluded after the second round, a final round will be held, in which both offerors may make an increased bid.

Sky has a market capitalization of 27 billion pounds, or about $36 billion. 21st Century Fox already owns a 39 percent stake in Sky.

In July, Comcast increased its cash offer for Sky to 26 billion pounds, or about $34 billion. The move by Comcast came less than a day after 21st Century Fox increased its offer to 24.5 billion pounds, or about $32.5 billion.

If Fox emerges as the winner in the Sky auction process, it would also mean Walt Disney Co. (DIS) could gain control over Sky. Disney has already agreed to acquire certain assets of Fox, including its stake in Sky.

The UK Takeover Panel noted that Sky, Comcast, Fox and Disney have agreed to the terms of the auction procedure.