DIS Walt Disney Co

(Refocuses headline and lede, adds background)

By Adria Calatayud

The U.K. Takeover Panel will consider appeals against a ruling that required Walt Disney Co. (DIS) to make an offer for Sky PLC (SKY.LN) if it buys 21st Century Fox Inc.'s (FOX) entertainment assets, one day after Fox formalized its own bid for the U.K. pay-TV group.

The British regulatory said Wednesday that a meeting of its appeal board will be convened to consider those lodged by several interested parties. The panel didn't disclose the identity of those parties.

The appeal process could extend further the battle for control of the British pay-TV group, which has seen Fox and Comcast Corp. (CMCSA) challenge each other in a bidding war that has contributed to double Sky's valuation since Dec. 2016.

At 1223 GMT, Sky shares traded 0.7% higher at 1530 pence.

Last week, the panel confirmed that Disney would have to make an offer for Sky if Disney's acquisition of the Fox assets, including Fox's current 39% stake in Sky, goes ahead before a potential buyer takes control of the U.K. pay-TV group. The so-called chain-principle offer would have to be priced at 14.0 pounds ($18.13) a Sky share, in light of the deal between Fox and Disney.

The chain principle wouldn't apply if, by the time Disney's deal with Fox is completed, either Fox has taken full control of Sky or Comcast or any other third party has bought more than 50% of the U.K. company, the Takeover Panel said.

Shareholders of Disney and Fox approved the $71 billion deal between the two companies on July 27.

Comcast last month posted to Sky shareholders a takeover offer that values the company at GBP25.9 billion, or GBP14.75 a share.

On Tuesday, Fox published the documents related to its GBP14-a-share offer to buy the 61% stake in the company it doesn't already own.

Fox said the deal is dependent on approval from shareholders representing 75% of Sky shares that it doesn't currently hold. However, Fox said it reserves the right to reduce the acceptance condition to a level not less than a simple majority of all Sky shares.

The publication of the offer documents means that, under U.K. takeover rules, Fox will now have until Sept. 22 to revise its proposal and try to outbid Comcast.

Sky's independent committee said it noted the publication of Fox's offer document and will publish its formal response within 14 days. Last month, Sky's independent directors said they recommended the Comcast offer.

Fox shares common ownership with News Corp (NWS), the parent company of Dow Jones.

Read more about the Sky takeover at https://on.wsj.com/2JhQx1C (WSJ paywall) or https://bit.ly/2vwgFB7 (NewsPlus).

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

August 08, 2018 09:00 ET (13:00 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.