BSkyB to return £1 billion to investors following failed takeover bid
29 Jul 2011
According to UK satellite broadcaster BSkyB it would hand out $1 billion to placate investors who lost out after News Corp dropped its bid to take full control of the company following a public outcry over a phone hacking scandal.
Meanwhile, BSkyB, board yesterday voted unanimously to continue with James Murdoch, son of the News Corp chairman Rupert Murdoch, as its chairman.
The company would return £750 million, to investors with a share buy-back, and additionally £253 million by raising the final dividend to £1.454 a share.
News Corp has agreed to participate in the buyback, meaning its 39-per cent stake would not change, according to BSkyB.
Without the participation of News Corp, its stake could have gone up, possibly sparking a controversy in the current climate.
The payout was announced today after it declared results that beat expectations for sales and profits. However, a slowdown in new customers reflected the impact of the weak British consumer economy.
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