BSkyB confirms talks to buy Fox's German, Italian TV assets

|About: Sky Plc (BSYBF)|By:, SA News Editor

British Sky Broadcasting (BSYBF) is in preliminary talks to acquire 21st Century Fox's (FOX) stakes in Sky Deutschland (SKDTF) and Sky Italia in a deal that would create a pan-European satellite-TV giant.

Confirming weekend reports that discussions have taken place, BSkyB said it could purchase Fox's 57% stake in Sky Deutschland and then launch a mandatory takeover offer for the rest of the company, although not at a premium. Fox's holding in Sky Deutschland has a market value of over €3B, while its 100% stake in Sky Italia is worth €5B.

Bloomberg reported that BSkyB, which is 39% owned by Fox, could pay €10B ($14B) for the two stakes.

BSkyB's shares are -2.4% in London, while those of Sky Deutschland are +6.5% in Frankfurt. (PR)