Sky: hurdle to approval gets higher, Credit Suisse says.
(CercleFinance.com) - On Wednesday Credit Suisse is maintaining its "neutral" rating on Sky, along with its target price of 1,075 pence, although points out that the hurdle to approval of the Fox deal has got "higher.
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The brokerage firm reminds that the British government has chosen to refer the Fox/Sky transaction to the Competition and Markets Authority (CMA) on both plurality grounds and broadcasting standards, compared to only media plurality grounds previously.
"This raises the hurdle for ultimate approval, in our view because it opens up more avenues for investigation, but does not tip the balance decisively against approval," Credit Suisse said.
In a research note, the broker says the stock should be trading in the 700-750 pence area if the transaction was blocked, or Fox withdrew its offer.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
"
The brokerage firm reminds that the British government has chosen to refer the Fox/Sky transaction to the Competition and Markets Authority (CMA) on both plurality grounds and broadcasting standards, compared to only media plurality grounds previously.
"This raises the hurdle for ultimate approval, in our view because it opens up more avenues for investigation, but does not tip the balance decisively against approval," Credit Suisse said.
In a research note, the broker says the stock should be trading in the 700-750 pence area if the transaction was blocked, or Fox withdrew its offer.
Copyright (c) 2017 CercleFinance.com. All rights reserved.