Murdoch seeks full control of BSkyB, but meets resistance

Directors of British Sky Broadcasting have rebuffed an initial attempt by Rupert Murdoch's News Corp to take full control of the UK satellite broadcaster he founded 21 years ago.

Murdoch's approach for the 61 per cent he does not already control valued the company at 700p per share, or close to £12bn, compared with a closing price on Monday of 600.5p. That suggests a full bid could cost News Corp more than £7bn, or almost twice as much as its $5.8bn acquisition of Dow Jones in 2007. Regulatory hurdles to a formal bid from the majority shareholder could be the biggest obstacle to completing a formal bid. BSkyB's directors are understood to be pressing for a higher offer in part to compensate shareholders for the long wait they would face for a bid to clear.