Rupert Murdoch's new takeover approach for British pay-TV firm Sky "should be investigated" by the U.K.'s competition authorities, according to opposition politicians, though analysts said that a deal "should be easier to get through this time round," according to Davey & Holton of REUTERS. Liberal Democrat Vince Cable, who was Britain's business secretary at the time of Murdoch's first bid in '10-11, said that the media tycoon's new takeover attempt "would not be in the public interest." Tom Watson, deputy leader of Britain's opposition Labour Party and a critic of the Murdoch business family, "also called on regulators to be ready to properly vet the deal -- but did not oppose it outright." On Friday, Murdoch's Twenty-First Century Fox said that it had "struck a preliminary deal" to buy the 61% of Sky it does not own for around $14B. Analysts and Murdoch allies said that Friday's proposal was "likely to have an easier ride, partly because News Corp. has now separated from Fox," which means the bidding firm no longer owns U.K. newspapers, and because there are "little or no competition issues, with very significant changes in the market for news" in the U.K. since '10. They also said that the British government was "keen to promote investment in the wake of the Brexit vote and could present the deal as a sign of confidence in the economy" (REUTERS, 12/10). REUTERS' Costas Pitas reported a major shareholder in British pay-TV company Sky will vote against Twenty-First Century Fox's takeover bid, while another said that "it is unhappy about the offer." The major shareholder, which declined to be named but said it was one of Sky's top 50 stakeholders, described the bid as "far too low." The investor said, "We are voting against the deal if it comes out in its current form and we have told the company as such." A second shareholder said that Sky's directors "should push for more." Jupiter Asset Management fund manager Alastair Gunn said that it "ought to be the start of the process, not the conclusion" (REUTERS, 12/12). REUTERS' Elizabeth Piper reported U.K. PM Theresa May is aware of Murdoch's takeover bid for Sky, but her spokesperson said that it "would not be appropriate to comment on the deal." A spokesperson for May said, "We're aware of the proposed merger. It is not something it would be appropriate for government to comment on" (REUTERS, 12/12).
