ValueAct Capital Gets Board Nomination at 21st Century Fox, Increases Stake ~ market folly

Wednesday, September 30, 2015

ValueAct Capital Gets Board Nomination at 21st Century Fox, Increases Stake

Jeff Ubben's ValueAct Capital has filed an amended 13D regarding their stake in 21st Century Fox (FOX / FOXA).  Per the filing, ValueAct now owns 5.9% of the company with over 47.3 million FOX shares.

Increases FOX Stake

This is up from the 44.5 million shares they owned at the end of the second quarter.  ValueAct owns voting shares (FOX) and has utilized this to help earn themselves a seat at the table.  Their shares are held in a vehicle called Volpe Velox, which is Latin for swift fox.

Ubben Gets Board Nomination

The filing notes that Jeff Ubben has been nominated to Fox's board.  In exchange for the nomination, Ubben has agreed with the company to enter a standstill agreement.  His firm has agreed to not solicit any proxies and won't acquire 7% or more of the company's stock.

ValueAct seemingly acquired the majority of their position around $32 per share and FOX currently trades under $27.

For more on ValueAct, we also highlighted their recent investment in Rolls Royce.

Per Google Finance, 21st Century Fox is "a global media and entertainment company. The Company’s Cable Network Programming segment consists of the production and licensing of programming distributed primarily through cable television systems, direct broadcast satellite operators, telecommunication companies and online video distributors. The Television segment consists of the broadcasting of network programming in the United States and the operation of 28 full power broadcast television stations, including 10 duopolies, in the United States. The Filmed Entertainment segment consists of the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media worldwide, and the production and licensing of television programming worldwide. The Direct Broadcast Satellite Television consists of the distribution of programming services via satellite, cable, and broadband directly to subscribers in Italy, Germany and Austria."

Be sure to also check out Mason Morfit on ValueAct's approach.

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