Does this present a Takeover opportunity for you?

Will this deal go wrong, or will Sky shares rise even further?

• Comcast and Fox are in a takeover battle for control of Sky (Fox already owns 39%).
• Comcast’s latest offer stands at 1,475p per share; Fox’s offer: 1,400 per share.
• Both offers are below Sky’s latest market price of 1,570p, suggesting investors believe higher bids are possible.
• Both Comcast and Fox have extended their offer deadlines to 6 Oct.
• If neither company submits final offer by 22 Sept, the merger could go to a “sealed bids” auction
• Will Comcast and/or Fox improve their takeover offers for Sky above current market price?

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Trading Sky – An Example

Let’s say you think that Sky is likely to rise further as a result of an improved takeover offer, towards new 18-year highs, perhaps even above. You decide to buy exposure to £10,000 worth of Sky using a CFD, at the current price of 1,570p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Sky share price rises by 10%. Your profit would be £1,000, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Sentiment towards the deal sours and Sky shares fall 5% and hit your stop-loss. Your loss would be £500.

This is provided for information purposes only. It should not be taken as a recommendation.