The UK’s takeover regulator could use its power to instigate a formal auction process for Sky PLC (LON:SKY) to end the bidding war for the broadcaster between Comcast Corp (NASDAQ:CMCSA) and Twenty-First Century Fox Inc (NASDAQ:FOXA).
The Takeover Panel rarely uses its authority to launch auctions in takeover situations. There have been just three auctions handled by the regulator since 2007, including the £6.2bn sale of steelmaker Corus to India’s Tata Steel.
Comcast has offered £14.75 per share for Sky, valuing the broadcaster at £25.9bn, compared to Fox’s bid of £14.0 per share for 61% of the company that it does not already own.
The offer period for Comcast’s offer is open until September 12 while Sky shareholders have until September 17 to accept Fox’s proposal.
READ: Comcast extends offer period for Sky amid bidding war with Fox
Rupert Murdoch’s Fox and Comcast both have until September 22 to revise their current bids but if neither party has bowed out by then, the regulator can step in and start an auction.
The Panel has declined to comment.
Fox first launched a bid of £10.75 per share for Sky in December 2016 but the deal was held up by UK regulators and lawmakers over concerns about giving the Murdoch family too much power and influence over British media.
Comcast confirmed a higher takeover proposal for Sky in April, leading the broadcast to withdraw its recommendation for the Fox offer.
Sky’s independent directors have recommended shareholders back Comcast's current bid.
At the time of writing, Sky’s shares were trading at £15.42 each.