Shareholders oppose BskyB buyback proposal |
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Published
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Mon, 31 Oct 2005 20:05
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LONDON: Legal and General, BskyB’s largest investor, said it planned to join the satellite broadcaster’s shareholders in voting against the proposed share buyback.
L&G which holds 2.5 percent of BskyB said the buyback provision would allow Rupert Murdoch’s media conglomerate News Corp to increase its stake from 37 percent to over 39 percent.
The proposed buyback of 5 percent is seen as an attempt by News Corp to gain “creeping control” over the company. At a shareholders meeting slated for Friday, BskyB will seek approval to its proposal and also explain how and where the £211 million acquisition of broadband provider Easynet will figure in the broadcaster’s operations.
The television group had some time back mentioned its intention to develop a hybrid satellite-broadband service but provided little detail.
BskyB is asking shareholders to waiver takeover rules. This would allow News Corp to participate in the buyback plan, failing which it would have to launch a bid for the entire company.
News Corp did not participate in the buyback last year which increased its stake from previous 35 percent to 37 percent.
Several investor groups have protested against the move; these included the Association of British Insurers.
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