Sky Deutschland AG’s second-largest shareholder said that British Sky Broadcasting Group Plc’s offer to buy out investors is too low and it won’t sell without a premium.
Odey Asset Management LLP holds about 8 percent of Sky Deutschland, the company said in a statement today. That makes it the company’s biggest investor after Rupert Murdoch’s 21st Century Fox Inc., according to data compiled by Bloomberg.
BSkyB agreed to buy Murdoch’s 57 percent holding in the German cable television company for 2.9 billion pounds ($4.9 billion) in cash last week. Under German takeover rules, BSkyB must also make an offer for the remaining 43 percent. BSkyB is offering 6.75 euros a share for the rest.
The bid “significantly understates the value of the company,” Odey Asset Management said in the statement. The company “does not intend to tender its shares in this proposed offer.”
Sky Deutschland will give an opinion on BSkyB’s offer after a review.
Sky Deutschland rose less than a cent to 6.755 euros in Frankfurt today. The shares have declined 16 percent this year.
Crispin Odey, Odey Asset Management’s founding partner, didn’t immediately return an e-mail seeking further comment. Odey married Murdoch’s oldest daughter Prudence in 1985 and the couple were divorced after about a year.
Cato Stonex, a fund manager at Taube Hodson Stonex Partners LLP, another top-five shareholder in Sky Deutschland, also said that BSkyB should offer a premium for the shares, in an interview before the formal offer.
Rupert Murdoch, who also controls 39 percent of BSkyB, is selling the stake in Sky Deutschland as well as wholly owned Sky Italia in a deal valued at more than $9 billion. The sales will allow him to keep ownership in a growing pan-European pay-TV empire while raising additional funds for a takeover of New York-based entertainment company Time Warner Inc.