21st Century Fox Says Thanks but Not Interested

 21st Century Fox rejected rival bid of $34.41 per share for assets

21st Century Fox Says Thanks but Not Interested, Stockwinners
21st Century Fox Says Thanks but Not Interested, Stockwinners

Disney (DIS) disclosed on Wednesday in a regulatory filing that on November 14, 2017, representatives of 21st Century Fox (FOXA) and “Party B” held discussions via conference call regarding a potential strategic transaction between the parties.

Party B, which Reuters reported last night to be Comcast (CMCSA), provided Fox a non-binding proposal to acquire the remaining company at a price of $34.41 per share payable in stock of Party B, subject to further discussions on the allocation of regulatory risk.

Disney’s filing further explained, “Representatives of Goldman Sachs and Centerview then discussed with the 21CF board the potential financial profiles of the surviving entities from potential strategic transactions with each of Party B and Disney.

In addition, representatives of Goldman Sachs discussed with the 21CF board illustrative financial implications of the potential strategic transactions as proposed by each of Disney and Party B, including illustrative future trading ranges for each of Disney and Party B on a pro forma basis, giving effect to the potential strategic transactions.

Goldman Sachs noted that the probability of Disney stock trading toward the higher ends of the range on a pro forma basis could be viewed as higher than such a likelihood for Party B.

Goldman Sachs also noted the higher likelihood for revenue synergies in a Disney transaction over and above the cost synergies assumed in the Goldman Sachs valuation analyses.

At the end of the meeting, the 21CF board directed management to cease discussions with Party B and focus on finalizing negotiations with Disney.”

On December 7, 2017, Fox’s Rupert Murdoch informed the Chairman and CEO of Party B that Fox would not enter into an exclusivity arrangement with Party B at this time and that Fox would suspend discussions while it pursued other opportunities, Disney’s filing states.


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