British Sky Broadcasting Group PLC confirmed Monday it has
initiated preliminary discussions with 21st Century Fox Inc. over
the potential acquisition of its pay-TV assets in Germany and
Italy.
"These discussions have not progressed beyond a preliminary
stage, no agreement has been reached on terms, value or transaction
structure and there is no certainty that a transaction will occur,"
BSkyB said.
The company said any deal would involve BSkyB buying 21st
Century Fox's 57% stake in Sky Deutschland and then launching a
mandatory takeover offer for the rest. BSkyB added that, subject to
German minimum offer price rules, this offer would be made without
a premium. 21st Century Fox owns all of Sky Italia.
BSkyB is 39%-owned by 21st Century Fox Inc., which until June
was part of the same company as The Wall Street Journal parent News
Corp.
BSkyB added that all board discussion of the issue is solely
within a committee composed of its independent directors, which
doesn't include directors affiliated with 21st Century Fox.
In a separate statement 21st Century Fox also confirmed the
talks.
"Over the years we've had numerous internal discussions
regarding the organizational and ownership structure of the
European Sky-branded satellite platforms. From time to time these
conversations have included BSkyB, however no agreement between the
parties has ever been reached," the company said.
Write to Ian Walker at ian.walker@wsj.com
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