The management board and the supervisory board believe that the consideration offered by BSkyB does not reflect the long-term growth and profitability prospects and thus intrinsic value of Sky Deutschland, according to a joint statement. Therefore they can’t recommend acceptance of the offer.
BSkyB offers €6.75 per share as part of the UK broadcaster’s plan to create a Europe-wide pay-TV company that would also include Sky Italia. The bid is open until October 15, 2014.
As BSkyB, with its 57.4% stake, already holds the majority in Sky Deutschland, the overall plan to streamline its UK, Italy and Germany pay-TV activities across content, technology and logistics is not likely to be affected by minority shareholders declining the offer.
In a statement, BSkyB already said that there is no minimum acceptance condition as BSkyB believes it can realise the advantages of closer collaboration with its existing 57.4% stake.
The European Commission recently approved the creation of Sky Europe, arguing that it would not raise competition concerns as the companies involved served three separate markets.