Fox withdraws Time- Warner acquisition bid

[Thakur]

BENGALURU: Twenty-First Century
Fox (Fox) withdrew its proposal to
acquire Time Warner Inc. Excerpts
of the Fox press release–chairman
and CEO Rupert Murdoch commented:“We viewed a
combination with Time Warner as
a unique opportunity to bring together two
great companies, each with celebrated content
and brands. Our proposal had significant
strategic merit and compelling financial
rationale and our approach had always been
friendly. However, Time Warner management
and its Board refused to engage with us to
explore an offer which was highly
compelling. Additionally, the reaction in our
share price since our proposal was made
undervalues our stock and makes the
transaction unattractive to Fox shareholders.
These factors, coupled with our commitment to
be both disciplined in our approach to the
combination and focused on delivering value
for the Fox shareholders, has led us to
withdraw our offer.”
“21st Century Fox’s future has never been
brighter. The strength of our leading
franchises, combined with the power of our
emerging growth businesses and the leadership
positions of our international enterprises put
us on a path for even greater success.”
The Board today authorised a USD 6 billion
share repurchase programme. The repurchase
of an additional USD 6 billion of Class A
Common Stock is expected to be completed in
the next 12 months.
Murdoch continued, “This significant return of
capital underscores the Company’s ongoing
commitment to disciplined capital allocation
and returning value to shareholders in a
meaningful way.”
Time Warner responded with a press release.
Excerpts of Time Warner’s statement regarding
the announcement by Twenty-First Century Fox
that it has withdrawn its proposal to acquire
all of the outstanding shares of Time Warner.
“Time Warner’s Board and management team
are committed to enhancing long-term value
and we look forward to continuing to deliver
substantial and sustainable returns for all
stockholders. Time Warner is well positioned
for success with our iconic assets, including
the world’s leading premium television brand,
the world’s strongest ad-supported cable
network group, and the world’s largest film
and television studio. We thank our
stockholders for their continued support.
Citigroup Global Markets Inc. is acting as
financial advisor to Time Warner. Cravath,
Swaine & Moore LLP is acting as legal advisor
to Time Warner.” http://www.indiantelevision.com/cable-tv/msos/fox-withdraws-time-warner-acquisition-bid-140807