Stock analysts wondered who might buy BSkyB (BSY) if News Corp....
Stock analysts wondered who might buy BSkyB (BSY) if News Corp. (NWSA) is forced to divest all or part of its stake as a result of U.K. phone hacking investigation. “While we are not legal experts, it is safe to…
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conclude there is some non-zero chance that Ofcom will effectively force News Corp to divest all or part of its stake,” Bernstein analysts Claudio Aspesi and Todd Juenger wrote in a note to investors. The options don’t look good, they concluded. “We believe that almost any scenario (or combination of scenarios) … would likely result in consideration to News Corp below current market value, destroying Enterprise Value for NWSA and BSY shareholders alike,” they wrote. And even if News Corp. retains is stake in BSkyB, the News Corp. shareholders may suffer, they said. “News Corp professes belief someday they will be allowed to resume the process to acquire control,” the analysts wrote. “We view the chances of that happening in the next decade, politically, to be extremely remote."