On a calm Friday afternoon in the City media stocks were rallying as confirmation came through of us media giant 21st Century Fox making a takeover approach for UK listed satellite broadcaster Sky.
The proposed offer is worth £10.75 per share prior to the announcement shares were trading at £8.37, already up 6% from yesterdays close. On the announcement the shares spiked to intra-day highs of £10.40 a share.
Rupert Murdoch controls 21st Century Fox, which already owns a 39.1% stake in Sky. The announcement confirmed the independent directors of both companies had “reached agreement on an offer price” of £10.75 a share, but added that “certain material offer terms remain under discussion”.
The collapse in the value of the pound makes UK listed companies significantly cheaper than earlier on this year for international buyers.
Shares closed at Friday £10.39.