Sky prepares for £97m advisory bill on Fox deal

Telecoms giant Sky has revealed it is anticipating a bill for its advisory team of between £90m and £97m, if 21st Century Fox triumphs in its attempt to takeover the firm.

A circular published by the broadcaster today said it will spend as much as £61.5m on financial and broking advice, with an additional £20m to be spent on lawyers for their work on the deal with Fox. Other costs include accountancy fees and public relations advice.

Morgan Stanley and Barclays were listed in the circular as the transaction’s financial advisers and corporate brokers. PJT Partners was listed as an additional financial adviser.

Fox, which already owns a 39 per cent stake in Sky, is currently facing down a higher bid from US broadcaster Comcast at £14.75 a share. Comcast remains ahead of the pack after Sky bosses recommended its offer to shareholders last month.

Yesterday’s circular from Sky’s deputy chairman Martin Gilbert reiterated the independent committee’s advice that shareholders take no action on Fox’s offer.

The news comes as the UK’s takeover watchdog said last week that should an existing deal for Walt Disney to acquire Fox and its current shares in Sky conclude before Fox buys up the rest of the broadcaster, Disney will have to match Fox’s £14 per share offer for 100 per cent of Sky.

The US media corporation has until 22 September to come back to the board with a revised offer.