Fellet: why the merger was pulled

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Sky TV and Vodafone dropped their $3.44 billion merger bid and Commerce Commission appeal because of the estimated cost of at least $1 million each and an estimated one-year timeframe, Sky ceo John Fellet has told NBR’s Chris Keall.

It was a mutual decision, Fellet said. “I’d rather use that management time on something else.”

And because the drop-dead date of the original merger deal had expired, it would have to be renegotiated and resold to shareholders. “And that was not an easy topic,” he said.

That was in the context of no one being able to give him anything better than 50-50 odds of the deal ultimately being approved.

The decision was also eased by the fact Sky and Vodafone have gone ahead and negotiated a much closer marketing partnership anyway.

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