Fox raises Sky bid in battle with Comcast

Rupert Murdoch's 21st Century Fox today increased its takeover offer for Sky, valuing the pan-European TV group at 24.5 billion pounds and trumping Comcast's rival bid.

21st Century Fox's improved approach is for the 61 per cent of Sky it does not own. New York-listed 21CF raised its offer to 14 pounds for each outstanding share, up substantially on a previous tilt that was pitched at 10.75 pounds.

Following the announcement, Sky's share price was down 1.4 per cent at 14.81 pounds, though above the improved offer with analysts betting on an extension to the bidding war.

"Fox coming back in for Sky isn't a surprise in itself, but the fact the offer is slightly behind what some had anticipated brings another twist," said George Salmon, equity analyst at Hargreaves Lansdown.

"In fact, there's every chance it might entice another counter from Comcast. That might explain why the shares still trade above the latest offer price." Fox's new bid values the whole of Sky at 24.5 billion pounds (USD32.5 billion), beating an offer of 22 billion pounds from US cable giant Comcast for the satellite TV group.

A statement issued today by Fox said: "Today, 21CF and the Independent Committee of Sky are pleased to announce that they have reached agreement on an increased... cash offer."