James Murdoch at Select Committee on 10th November and then BSkyB AGM on 29th November – a chance for shareholders to have their say
Brewin Dolphin holds over 3 million BSkyB shares on behalf of our clients and provides a facility for clients with their shares in our nominee – to vote as they think best at their companies’ AGMs. The Vote Your Shares service can be found on our website, as can the BSkyB Proxy card and voting instructions.
Charlotte Black, Head of Corporate Affairs at Brewin Dolphin said “Whatever the merits of the Board of BSkyB – the phone hacking scandal has generated a huge amount of interest and is likely to attract more attention on Thursday when James Murdoch appears again before the Culture Media and Sport Committee.
Here is a chance for investors to act as corporate guardians if they so wish. We have always believed in the rights of our clients to be able to vote on corporate matters relating to the companies they invest in and have provided the ‘Vote Your Shares’ facility for many years.”
Nicla Di Palma, CFA – Media Analyst at Brewin Dolphin says: “We do not believe James Murdoch’s second appearance in front of the Select Committee has significant implication on BSkyB’s investment case at this point, as it has not yet been proved that he was aware of all the goings on at News of the World.
If James Murdoch is found to have been lying, then Ofcom could intervene and deem NewsCorp a “not fit and proper” company to own BSkyB. This would imply NewsCorp might have to sell all (unlikely) or part of its 39% stake in BSkyB, to take it below a certain threshold (30% in our view). This would create a 9% overhang on the shares which would weigh on the price.
Our investment case on BSkyB is predicated on the shares’ defensiveness in a period of high economic uncertainty. In our view, Pay-TV is more utility-like than discretionary for most households. In addition, we expect the company to generate significant cash due to the end of the high investment phase which dragged down earnings and cash flow for a long time. “
The opinions expressed in this document are not the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd. accepts liability for any direct or consequential loss arising from the use of this document or its contents.
For further information please call the Brewin Dolphin Press Office on 0203 201 3026