Sky Deutschland considers BSkyB’s takeover bid “inadequate”

Sky Deutschland (SKYD) has released a statement outlining that British Sky Broadcasting’s (BSY) offer “doesn’t reflect the company’s long-term potential and therefore its inner value”.

BSY offered to buy 21 Century Fox’s 57.4% stake in SKYD for £2.9bn in cash, valuing the German business at £6.75 a share. BSY also matched the offer of £6.75 a share to SKYD’s remaining minority shareholders.

SKYD’s supervisory and executive boards have now advised shareholders not to accept the offer by BSY, a week after the European Union approved the deal.

SKYD’s shareholders, including Odey Asset Management and Taube Hodson Stonex Partners, have stated they consider the offer “inadequate”.

BSY’s financial officer, Andrew Griffith, said the company was "neutral" about buying out the remaining shareholders.

If approved, the agreement would transform BSY into a European satellite and cable service with almost 20m subscribers across the continent.

BSY's shares were up 0.1% on Wednesday morning, while SKYD gained 0.2%.