Media manoeuvres see INL take to Sky

Friday 15th June 2001

By Deboah Hill Cone

Print media company INL is set to take control of television company Sky after shareholders yesterday approved the last part of a $231 million share deal.

INL is to issue 42.5 million new shares to Todd Communications Ltd, the Todd investment vehicle which owned its stake in Sky.

In return for issuing the shares to Todd, INL received 42.5 million Sky shares.

INL now owns 66.25% of Sky made up from its existing stake of just under 50%, 5.2% of Sky it bought on May 30 and the 42.5 million new shares which shareholders approved today.

Analysts say Sky and INL are well positioned to co-ordinate their "operational synergies," such as information sharing, without radical restructuring.

There also appears to be little reason for INL to undertake a 100% takeover of Sky, analysts say.

Telecom holds 12% of Sky and before the share issue and buyback holds about 10% of INL.

INL is just under half-owned by media mogul Rupert Murdoch's News Corp.

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