News Corp investor raise offer for rest of NDS

NEW YORK: News Corp and a private equity firm raised their offer to buy out public shareholders of News Corp.'s subsidiary NDS Group PLC, which has accepted the sweetened bid.

News Corp. and funds advised by Permira Advisers LLP raised their offer to $63 per share in cash for NDS's shares, from the previously announced offer of $60 per share from June 27.

That offer was a 21 percent premium over the price of $49.70 that NDS's US-listed stock closed at that day. The shares added $3.56, or 6.2 percent, to $60.96 in morning trading on Tuesday.

NDS Group, a British company that makes technology for pay TV services, has agreed in principle to accept the new offer. News Corp. said the initial offer was preliminary and that the higher bid came after negotiations with an independent committee of the NDS board.

A spokesman for Permira did not immediately return calls for comment. News Corp. currently owns roughly a 72 percent stake in NDS and controls 96 percent of the shareholder vote through a special class of shares.

If the deal goes through, News Corp. would cede control of NDS to the Permira funds, winding up with a 49 percent ownership and voting power in the new company. The Permira entities would have 51 percent. News Corp., which plans to report fiscal fourth-quarter earnings later Tuesday, said it will give more details on the deal with NDS during its conference call with analysts, scheduled for 5:30 p.m.