Investors buy up shares in Sky as takeover saga heads to sealed bids auction

Josh Mines
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OFCOM Considers The Multi-billion Pound Takeover Of SKY By 21st Century Fox
The long takeover saga for Sky could soon be heading to an exciting conclusion (Source: Getty)

Major investment managers and hedge funds have been busy building up their stake in media giant Sky ahead of a crunch deadline approaching this weekend.

US based Elliott Advisors said it had raised its stake to 4.3 per cent. Hedge fund Odey Asset Management has also loaded up on shares, while another US fund Baupost has built itself up to a 4.8 per cent stake.

Shares in the firm have doubled over the last two years as the takeover saga has dragged on, and have risen 54 per cent since the start of January.

Read more: 21st Century Fox extends deadline for Sky to vote on £24.5bn offer

Comcast is currently ahead of 21st Century Fox's £24.5bn offer with a bid worth £26bn. Both firms have until Saturday afternoon to revise their bids for Sky, which is looking an unlikely possibility.

The contest will be brought to a close if they table "full and final" offers or if one side pulls out of the race for the assets.

If no clear winner is decided by this deadline, the contest could head to a "sealed bids" auction overseen by the Takeover Panel, where neither side can see what the other is bidding. Terms for this process are currently being discussed by Comcast, Fox and the Takeover Panel.

Sky is regarded as a highly lucrative asset with 23m customers. Media companies are currently working to beef up their entertainment offerings in the face of streaming rivals Netflix and Amazon.

Crispin Odey, who's fund is a top 20 investor, previously said Sky is worth far more than either firm is offering for it, with his valuation topping £50bn.

Read more: Sky adds Netflix to its streaming platform in bid to lure in more viewers

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