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Hedge Fund Pushes Back on Fox-Disney Deal

Walt Disney recently announced a takeover of 21st Century Fox, and a hedge fund with a small stake in Sky has taken issue with the transaction. According to their claim, minority shareholders in the UK-based broadcaster will be hit with a large fee as a result, unless the regulator steps in.

The Takeover Panel is currently reviewing Disney’s request to curb regulations that would require the company to bid for Sky if competition regulators move to block the offer from Fox.

According to the Financial Times, UK takeover Rule 9.1 of the Takeover Code dictates that a business which acquires over 30% of shares in a public company is required to make an offer for the remainder of the business. This is to protect minority shareholders’ interests.

If UK regulators approve the deal, Disney will acquire 100% of Sky as a result. If they don’t, the outcome is still unknown.

Polygon is a hedge fund with less than 1% of Sky. Co-founder Reade Griffith has been in touch with the Takeover Panel to argue on the minority shareholders’ behalf. According to Griffith, Sky investors would be offered a higher premium than the one Fox offered had Disney bought its shares directly, but that both companies have been intentionally avoiding an exact value thus far.

“The Fox and the Mouse have been more clever than that. They have included the Sky stake into a box full of other attractive Fox assets and tied it up with a bow and ribbon and told the Takeover Panel that Rule 9.1 does not apply and therefore no premium is warranted to minorities,” Griffith said.

The Financial Times stated that “The hedge fund’s intervention could be the first signs of a rebellion against the original Fox deal to push for a premium from Disney.”

The fate of Sky is still undetermined as the regulatory review continues.

Adidas Leading Sportswear Industry with Significant Yearly Growth

Adidas recently revealed a 31% increase in yearly sales in North America, while its competitors have reported losses of up to 3%.  According to Nike and Under Armour, the athletic market is becoming more difficult to navigate, but Adidas’ gains indicate that that isn’t the case. Mark King, head of Adidas North America, explained that… Continue Reading

Staying Up To Date on Environmental Issues

It’s always important to stay up to date with environmental issues in the area in which you live. One of these issues is about landfills and how people are taking care of potentially threatening issues with them. In a recent opinion piece in the St. Louis Post-Dispatch, Missouri State Senator Bill Eigel wrote a thought-provoking… Continue Reading

General Motors Going All-Electric

As the transportation and auto industry evolves, many manufacturers are working to remain competitive. In a dramatic move, General Motors recently revealed its plans to shift into all-electric cars by 2023. Over the years they will launch at least 20 cars, both battery-electric and fuel-cell-electric vehicles. “General Motors believes the future is all electric,” said… Continue Reading

Insurers Grapple with Economic Costs of Cyber Attacks

Lloyd’s of London partnered with risk-modeling firm Cyence to publish a report examining the potential economic losses which would be incurred from a major hack of a cloud service provider or a cyber-attack on computer operating systems which are used by business across the planet. The report estimated that a major, global cyber-attack could result… Continue Reading

Nestle Considering Sale of Its US Chocolate Arm

The new head of Nestle SA, Mark Schneider, is considering selling its US chocolate division due to sluggish sales and a move toward faster-growing businesses like health care and coffee. Schneider became the CEO of the Swiss-based corporation in 2016 after working for many years in pharmaceuticals and medical products. The US division is had… Continue Reading

Canine Flu on the Rise

Certain parts of the US are seeing a significant uptick in the number of pet dogs coming down with the flu. Although it is not contagious to people, or life-threatening to dogs, it is still a concern to pet owners in Arkansas, Florida and North and South Carolina, where the epidemic is at its worst.… Continue Reading