BSkyB turns down £12bn takeover bid from News Corp

BSkyB has turned down a £12 billion takeover bid from News Corporation, saying it undervalues the company.

News Corp already has a 39% stake in BSyB, making it the company’s biggest shareholder.

Independent directors said that the offer of 700 pence per share was too low, although an offer of more than 800 pence could have seen the two parties do business.

The news saw BSkyB’s share price boosted 19pc to 715p in early trading.

BSkyB has agreed that it will  not request that the Takeover Panel issue a “Put up or shut up” notice on News Corp, which would force it to make a binding offer or wait six months before bidding again.

Nicholas Ferguson, BSkyB’s senior independent non-executive director, said: “The eight independent directors have evaluated the proposal since receiving News Corporation’s approach on 10 June. Based on careful review and advice, it is the unanimous view of the independent directors that there is a significant gap between the proposal from News Corporation and the value of the company.

“We believe the company has a track record of very strong performance and excellent growth prospects. The management team will remain fully focused on its strategic and operational priorities, positioning the Company well to grow earnings and cash and increase returns for shareholders.

“The independent directors remain fully committed to acting in the interests of all shareholders and will continue to meet on a regular basis.”