News Corp is in hot pursuit of British Sky Broadcasting, offering it $11.5 billion for the 61% of the British pay channel it doesn’t already own, according to the company’s own Wall Street Journal. That 700 pence-per-share offer was an improvement on the 675 pence-per-share reported last night, according to the Guardian, but Sky rejected it, saying it wouldn’t accept less than 800 pence-per-share.
The two sides have, however, agreed to work together to acquire regulatory approval, and reach a mutually-agreeable price. Rupert Murdoch's son, James, is Sky's non-executive chairman, but won't participate in the talks. “I wouldn’t think News Corp. would enter into this if they didn’t think they were going to get BSkyB,” one analyst told Bloomberg. Sky’s price shot up 19% to 715 pence on the news, its biggest jump in 10 years. (Read more News Corp stories.)