Major investment managers and hedge funds have been busy building up their stake in media giant Sky ahead of a crunch deadline approaching this weekend.
US based Elliott Advisors have raised their stake to 4.3 per cent. Hedge fund Odey Asset Management has also loaded up on shares, while another US fund Baupost has built itself up to a 4.8 per cent stake.
Shares in the firm have doubled over the last two years as the takeover saga has dragged on, and have risen 54 per cent since the start of January as the investment race has heated up.
Currently leading the race is Comcast who are ahead of 21st Century Fox’s £24.5bn offer with a bid worth £26bn. Both firms have until Saturday afternoon to revise their bids for Sky, which at this point is looking like an unlikely possibility.
If no clear winner is decided by the Saturday deadline, the contest could head to a “sealed bids” auction overseen by the Takeover Panel, where neither side can see what the other is bidding.
Sky is regarded as a highly lucrative asset with 23m customers. Especially as media companies are currently work to beef up their entertainment offerings in the face of streaming rivals Netflix and Amazon.
Crispin Odey, who’s fund is a top 20 investor, previously said Sky is worth far more than either firm is offering for it, with his valuation topping £50bn.