This report out from ABN Amro this morning giving positive spin on the poison pill.
NWS: We’re told by our US desk that the problems faced by NWS over the past week come as no surprise to global investors who have held investments with Delaware based clients in the past.
Welcome to America!!!
OK so a rights issue spells PANIC right? Well here is a positive spin for the believers…
News Corp's poison pill provision could prevent Liberty from acquiring a voting stake that could be used to force a transaction which is not in News Corp investors' interests. While the provision looks reactionary and defensive, we believe it is actually net good news for shareholders.
How?
Liberty's ulterior motive in building its voting stake may have been an asset swap for some of Liberty's cable programming assets, including QVC and Discovery. We were concerned that such a deal would not be attractive to News Corp investors and considered it a key valuation risk. We reckon this poison pill mitigates that risk.
Any significant pull-back is a buying opportunity in my view.
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This report out from ABN Amro this morning giving positive spin...
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