Activist Hohn urges Fox to engage on Comcast offer
TCI fund reveals it has built 7.4% stake
Christopher Hohn, the activist investor behind the TCI fund, has built a 7.4 per cent stake in Rupert Murdoch’s 21st Century Fox and has urged the mogul “to immediately engage” with Comcast when the US cable operator makes a formal offer for its entertainment assets.
TCI has steadily built a stake in Fox, which is controlled by Mr Murdoch through dual class shares.
In a letter to Mr Murdoch, Sir Christopher called on Mr Murdoch to welcome any proposal from Comcast.
Comcast on Wednesday confirmed that it was exploring an all-cash bid for the Fox assets, adding that any offer would be at a premium to a rival all stock deal offer from Walt Disney. Disney has agreed a deal with Fox that values the entertainment assets at $66bn, including debt.
The letter stated:
“We are aware that the Murdoch family has a potential conflict of interest because of capital gains tax, which could lead them to preferring a lower priced Disney stock offer, to a higher priced offer from Comcast. However, the personal tax position of the Murdoch family must be an irrelevant consideration for the board, in order for the board to comply with their fiduciary duties.”
Sir Christopher added in the letter that he viewed the regulatory risk in both offers “to be equal and low”.
“It is imperative that the 21st Century Fox board runs a fair auction . . . and sells it to the highest bidder,” he said.