British Sky Broadcasting
directors turned down a buyout offer from
, saying the offer "significantly" undervalues the company.
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.
Follow TheStreet.com on
and become a fan on
Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.