Rupert Murdoch could table a new £26bn-plus offer for Sky this week in an effort to stop rival Comcast from becoming the new owner of Europe’s biggest pay-TV broadcaster.
Under UK takeover rules, Murdoch’s 21st Century Fox has until the end of Thursday to formally post a bid to Sky shareholders as he looks to take control of the 61% of Sky he does not already own.
Analysts, on the other hand, do not believe it makes sense to go through that costly process and believe Murdoch should sweeten his offer before Thursday’s deadline.
“Logic says that it would make the most sense to put their best foot forward and make a new offer rather than send out the documents with the current inferior bid to shareholders,” says Bruno Burki from research and advisory firm United First Partners.
Murdoch could use Fox’s full-year results at the close of business in the US on Wednesday to announce a new bid. Disney, which could look to sideline Murdoch and mount a direct bid for full control of Sky, is due to report its latest quarterly results on Tuesday.