BSkyB extends Amstrad offer

Satdude

BSkyB extends Amstrad offer

Pay-TV company BSkyB has extended its £125 million offer for set-top box maker Amstrad.

In a statement today the broadcaster announced that Amstrad shareholders would now have until September 4th to accept the proposed takeover.

An initial offer period expired yesterday, with BSkyB revealing that as at 15:00 BST it had received the backing of investors who own approximately 85.9 per cent of Amstrad's share capital.

BSkyB, part of Ru'pert Murdoch's broadcast media empire, announced plans last month to acquire electronic hardware-maker Amstrad, which was founded in 1968 by Sir Alan Sugar – star of BBC1 show The Apprentice.

The takeover target currently designs and develops about 30 per cent of BSkyB's set-top boxes, which make up more than three-quarters of Amstrad's revenue.

BSkyB hopes that its planned acquisition of the manufacturer will give it greater control over product design.

However, despite the majority of Amstrad shareholders appearing to favour BSkyB's bid, the takeover is set to come under regulatory scrutiny.

The Office of Fair Trading has signaled its intention to examine the proposed deal due to the existing close relationship between BSkyB and Amstrad.

Commenting on the planned takeover last month, BSkyB chief executive James Murdoch stressed that his company and Amstrad had a "long and positive" relationship.

"The acquisition accelerates supply chain improvement and will help us to drive innovation and efficiency for the benefit of our customers," he explained at the time.

Regards Satdude.

j..m

I bet Mr Sugar is very pleased ...... He likes money