Stock exchange activist buys $3bn stake in 21st Century Fox
Chris Hohn's activist hedge fund TCI has built a $3bn (£2.1bn) stake in 21st Century Fox as the Rupert Murdoch-owned firm prepares to do battle with rival Comcast over British broadcasting giant Sky.
TCI now owns more than four per cent of Fox, according to overnight reports.
The UK hedgie, which attempted to oust London Stock Exchange chairman Donald Brydon and reinstate CEO Xavier Rolet last year, established the position as NBC Universal owner Comcast yesterday formally launched a £22bn bid for Sky.
Comcast's "superior offer" of £12.50 a share trumped a £10.75 deal previously agreed between Fox and the board Sky. This prompted the board of the Brentford-based broadcaster to withdraw its approval of the Murdoch-owned offer.
Read more: Money or power? Fox has a decision to make in its Sky pursuit
Hohn's Fox stake was first reported by the Wall Street Journal, which also quoted unnamed sources that said Comcast is also weighing up plans to intervene in Disney's $52bn acquisition of a wider portfolio of Fox's – which includes its interest in Sky.
In January, Elliott Advisors, Paul Singer's US activist hedge fund established a 1.09 per cent stake in Sky. Fox already owns 39 per cent of the company and is vying to buy the remaining shares prior to its deal with Disney.
Read more: Taking the Mickey: Have regulators just forced Disney to underwrite Sky?
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