Takeover panel confirms ruling for Fox's Sky bid

The UK takeover regulator has ruled that Disney could have to offer at least £14 a share to buy satellite broadcaster Sky.

Presuming Disney completes its agreed acquisition of 21st Century Fox, the Takeover Panel confirmed its ruling that, under the 'chain principle', the US media giant will be obliged to make a bid of £14 within 28 days per Sky share. Fox already owns 39% of Sky.

The chain principal price is designed to reflect the level of the offer Disney is making for Fox, and its holding in Sky.

Sky directors have recommended a £14.75-per-share bid from another US media group, Comcast, while Fox and Disney have made a bid of £14 but have reserved their option to increase the offer level at any point before a 46-day deadline, which would be 22 September.

After conducting a number of appeal hearings after making its initial chain principle ruling on 3 August, the panel confirmed that Disney's offer need not be made if by then Fox has acquired 100% of the shares in Sky or Comcast or any other third party has acquired more than 50% of such shares.

The panel said it would give more detail on the reasons for its decision in due course.