MUMBAI: UK pay-TV broadcaster BSkyB has rejected its majority shareholder News Corp’s buyout offer. 
 
BSkyB board, headed by James Murdoch (son of News Corp chairman Rupert Murdoch), has said that News Corp’s offer for 60.9 per cent of the company, at 700 pence per share or ?7.8 billion ($11.5 billion), undervalued the company.

“It is the unanimous view of the Independent Directors that there is a significant gap between the proposal from News Corporation and the value of the company,” it said in a statement 
 
News Corp‘s proposal of 700 pence per share is valuing BSkyB at $17.7 billion (12 billion pounds), while BSkyB is open for a higher offer of over 800 pence per share, which will value the company at around $20.2 billion (13.7 billion).

News Corp holds 39.1 per cent in BSkyB.