Page 25 - ARUBA TODAY

BUSINESS Friday 30 June 2017
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Murdoch takeover bid for Sky delayed for extra scrutiny

communications regula- two of the country’s big-
tor, Ofcom, before Bradley gest newspapers, The Sun
makes a final decision. and The Times.
In a report on the trans- Despite the government’s
action, Ofcom said the move to investigate fur-
merged company would ther, shares in Sky rose over
be Britain’s third largest 3 percent in London as in-
source of television news, vestors seemed optimistic
and its influence would be the deal would ultimately
magnified because it also go through.
owns newspapers, radio Buoying those hopes was
stations and online outlets. the fact that Twenty-First
“The transaction may in- Century Fox gave Ofcom
crease members of the assurances that it would
Murdoch Family Trust’s abil- protect the editorial inde-
ity to influence the overall pendence of Sky News af-
news agenda and their ter the takeover.
ability to influence the po- These promises may miti-
litical process, and it may gate the public interest
also result in the perception concerns, Ofcom said.
of increased influence,” Also, Ofcom recognized
Bradley said. that under Twenty-First
Murdoch’s New York- Century Fox, Sky would
based media group is try- remain a “fit and proper”
Media mogul Rupert Murdoch walks through Borough Market in London, Wednesday, June 14,
2017. Britain’s government stalled Twenty-First Century Fox’s takeover of the Sky pay television ing to buy the 61 percent company to hold a broad-
and broadband network Thursday after regulators said the deal could give Rupert Murdoch and of Sky it doesn’t already cast license.
his family too much influence over the country’s media. own, giving Twenty-First Bradley said she would not
(AP Photo/Frank Augstein) Century Fox easy access to question this finding.
Sky’s 22 million customers That is important because
By DANICA KIRKA lators said the deal could public interest concerns” in the U.K., Ireland, Austria, several women who al-
Associated Press give Rupert Murdoch and and said she is “minded to” Germany and Italy. lege they were sexually
LONDON (AP) — Britain’s his family too much influ- send it to the Competition Critics have charged that harassed at U.S.-based Fox
government stalled Twen- ence over the country’s and Markets Authority for the 11.7 billion pound News said the takeover
ty-First Century Fox’s take- media. further review. ($15.2 billion) deal would should be blocked be-
over of the Sky pay televi- Culture Secretary Karen Twenty-First Century Fox give Murdoch too much cause of corporate gover-
sion and broadband net- Bradley said Thursday that has two weeks to respond power in the U.K., because nance issues at the parent
work Thursday after regu- the deal “potentially raises to issues raised by the his company already owns company.q
Walgreens ends its takeover pursuit of rival Rite Aid

deal. geted to close within the share. Earnings, adjusted
Under the new agreement, next six months. for one-time gains and
Walgreens will buy 2,186 Prior to the new deal, costs, were $1.33 per share.
stores, three distribution Deerfield, Illinois-based Revenue rose 2.1 percent
centers and related inven- Walgreens and Camp Hill, to $30.1 billion.
tory from Rite Aid for ap- Pennsylvania-based Rite The results exceeded Wall
proximately $5.18 billion in Aid faced a complicated Street expectations. q
cash. Walgreens will also task of easing antitrust con-
assume the related real es- cerns to complete the buy-
tate leases and certain lim- out. The companies initially
ited store-related liabilities. expected to sell no more
Rite Aid will have an option, than 500 stores to appease
exercisable through May regulators, but that was
2019, to become a mem- eventually pushed to 1,200
ber of Walgreen’s group stores.
This photo shows a Walgreens drugstore in North Andover, Mass.
Walgreens ended its takeover pursuit of rival Rite Aid following purchasing organization. The combination of Wal-
resistance from U.S. regulators and will instead now buy stores, Walgreens said Thurs- greens, the largest U.S.
distribution centers and inventory in a new deal. day that the stores it pur- drugstore, and Rite Aid
(AP Photo/Elise Amendola) chases from Rite Aid will would have created a
be converted to the Wal- drugstore giant with more
NEW YORK (AP) — Wal- but was whittled down to greens brand “over time.” than 11,000 stores nation-
greens has ended its take- about $6.8 billion earlier this The stores included in the ally, even with the sale
over pursuit of rival Rite Aid year. agreement are mostly lo- of more than a thousand
following resistance from For scrapping the trans- cated in the Northeast, stores. That would have
U.S. regulators and will in- action, Walgreens Boots Mid-Atlantic and South- been a few thousand more
stead now buy stores, distri- Alliance will pay Rite Aid east. The three distribution than the nearest competi-
bution centers and inven- Corp. a $325 million termi- centers are in Dayville, tor, CVS Caremark Corp.
tory in a new deal. nation fee. It will pay Fred’s Connecticut, Philadelphia Meanwhile, Walgreens re-
The proposed merger, first Pharmacy an additional and Spartanburg, South ported a 5.3 percent boost
announced in 2015, was $25 million following the ter- Carolina. in fiscal third-quarter profit
initially for about $9.4 billion mination of a related asset The new transaction is tar- to$1.16 billion, or $1.07 per