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BSkyB Rebuffs News Corp. Buyout Offer

British Sky Broadcasting directors turned down a buyout offer from News Corp., saying the offer 'significantly' undervalues the company.

LONDON (

TheStreet

) --

British Sky Broadcasting

(BSY)

directors turned down a buyout offer from

News Corp.

(NWS) - Get Report

, saying the offer "significantly" undervalues the company.

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BSkyB, in a statement to the London Stock Exchange, said its directors think News Corp.'s informal offer of 700 pence a share is too low. The offer values BSkbyB at 12 billion pounds ($17.7 billion).

However, the directors said Tuesday they would be prepared to support an offer if it came in greater than 800 pence a share.

News Corp. already owns about 39% of BSkyB's shares.

BSkyB shares rose more than 21% to 724.5 pence in early trading in London.

-- Reported by Joseph Woelfel in New York.

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