by BBC News web site
US media giant 21st Century Fox has made a takeover approach for Sky that values the UK-based satellite broadcaster at £18.5bn. The proposed offer is worth £10.75 a share in cash, a premium of 36% to the closing price on 8 December. Sky shares ended 26.6% higher at 999.8p in London following the announcement. Media tycoon Rupert Murdoch controls 21st Century Fox, which already owns a 39.1% stake in Sky.
Sky said that the independent directors of both companies had “reached agreement on an offer price” of £10.75 a share, but added that “certain material offer terms remain under discussion”. According to Reuters’ calculations, Fox will pay £11.25bn for the stake in Sky that it does not already own.
The US company is required to “clarify its intentions” by 6 January, or walk away for at least six months under UK takeover rules.