Sky should hold out for more from Rupert Murdoch | Nils Pratley

While 21st Century Fox's 10.75-a-share bid seems fair value, the Sky board has been too quick to give it the thumbs-up

Before one dives into the political and regulatory thickets of media plurality and competition, there is a basic question to be asked about 21st Century Fox's 10.75-a-share bid for Sky. Are the financial terms any good?

Standard wisdom says Martin Gilbert and his panel of independent Sky non-executive directors can hold their heads high because the bid premium looks decent by traditional yardsticks. Rupert Murdoch's US company is offering 36% more than Sky's closing share price last Thursday, or 40% more than last Tuesday's level.