Odey Asset Management has voiced its opposition to plans by BSkyB to enlarge its stake in Sky Deutschland without paying a premium.
BSkyB has confirmed that it is in ‘preliminary discussions’ with 21st Century Fox about acquiring the latter’s pay-TV assets in Germany and Italy, which include 57% of Sky Deutschland.
BSkyB stated that in the case of Sky Deutschland it would ‘make this offer without a premium’.
This prompted Crispin Odey's (pictured) firm, which owns approximately 8% of Sky Deutschland, to come out against the deal publicly.
‘The current proposal, a nil premium takeover of the minorities of Sky Deutschland AG, significantly understates the value of the company,’ Odey said in a stock exchange announcement.
Odey’s position in Sky Deutschland is held across several funds, including 6.5% of Citywire + rated Crispin Odey’s (pictured) own £1.6 billion Allegra International fund, 7% of James Hanbury’s £894 million Absolute Return fund, and 2.1% of AA-rated Peter Martin’s £252 million Odey Portfolio fund.
At 2.50pm Sky Deutschland was up 10% at €6.95, while BSkyB was down 2.1% at £8.71p.