British broadcaster and phone service provider Sky is to be bought by Rupert Murdoch's 21st Century Fox for £18.5bn, according to reports. "Since the last bid there has been an increase in competition, so Sky's share of that is diminished".
Fox believes things have changed since then, not least because it has separated from Murdoch's newspaper business, which owns the Times, the Sunday Times and the Sun. This bid is from Fox which owns television and film businesses.
However, Standard Life Investments, one of Sky's fund manager shareholders, told The Times the loss-making company's stock was "clearly at a low ebb" and the proposed merger is "not a good deal".
Under the scheme, a bidder only needs the support of 75% of a company's independent shareholders before minority shareholders opposed to the offer are compelled to accept it, compared with a traditional takeover - where a bidder must win the support of 90% of all shareholders.
The Murdoch family has long wanted to take full control of Sky, despite failing in a previous attempt five years ago when the group's United Kingdom newspaper business became embroiled in a phone-hacking scandal.
He has dominated Britain's media and political landscape for decades, with former prime ministers Margaret Thatcher, Tony Blair and David Cameron securing the media mogul's blessing and the backing of his papers. The Secretary of State must refer the bid to Ofcom, to assess whether it would result in too much media power being concentrated in too few hands, and whether Rupert and James Murdoch are "fit and proper persons" to run a broadcaster.
The main concern for investors is that Fox, which is controlled by Rupert's son James Murdoch, who is also the chairman of Sky, is underpaying for the business.
The deal is subject to regulatory approval, but 21st Century Fox expects the acquisition to be completed before the end of 2017.
People familiar with the matter told Reuters the U.S. media corporation pounced after Britain's vote to leave the European Union in June sent the pound down about 15 percent against the USA dollar and Sky's share price tumbling.
Politicians from across the spectrum want to see the deal referred to the broadcasting regulator Ofcom.
The deal is worth £10.75 (US$13.40) per Sky share, or US$14.8 billion (14.2 billion euros ) in total for the cash purchase, the statement said.