Key investors resist INL bid for Sky TV

Former publisher INL's bid to take over Sky TV appears to have fallen short.

The offer closed last night. Although INL will not release details of acceptances until next week, it appears to have been thwarted from reaching the pivotal 90 per cent level required to proceed with compulsory acquisition of the rest of the shares, because key institutional investors have refused to accept its offer.

INL shares fell 10c, or 2 per cent, to $4.90 while Sky TV shares were down 2 per cent, (11c) to $5.10.

INL said this week it would not extend its offer, which comprises $3.35 cash a share plus a swap of three INL shares for every 10 Sky shares held.

The offer has already been accepted by Telecom which held a 12 per cent stake, giving INL 78 per cent.

One of those holding out, Australian fund manager Colonial First State, told the Stock Exchange yesterday it had boosted its stake in Sky TV from 6 per cent to 7 per cent.

Sky TV's independent directors, John Hart and Barrie Downey, have said the INL offer is unfair to Sky's minority shareholders.

INL said on Thursday that once the offer closed it would be able to announce the size of a planned capital return to shareholders, flagged last month to be worth at least $340 million.

INL sold its newspaper and magazine titles to Australia's John Fairfax Holdings for $1.2 billion in June, leaving it with a 66 per cent stake in Sky TV.

Staff reporter, NZPA