Twenty-First Century Fox approaches Britain's Sky for takeover

REUTERS - European pay-TV group Sky Plc said on Friday it had received a takeover approach from Rupert Murdoch's Twenty-First Century Fox Inc, the company's largest shareholder.

Sky's shares were up 26 percent at 10 pounds in late trading in London, while Fox's shares were up 4.3 percent.

Fox's offer of 10.75 pounds per share in cash, is a 36.2 percent premium to Sky's Thursday close, and values the company at about 18.48 billion pounds ($23.23 billion).

Fox already owns 39.1 percent of Sky, according to Thomson Reuters data.

According to Reuters calucations, Fox will pay 11.25 billion pounds for what it doesn't already own of Sky.

Fox Chief Executive James Murdoch was named chairman of Sky this year, fueling speculation that the U.S. media company would make a bid.

Sky, which has formed an independent committee to consider terms of the proposal, said discussions were continuing.

($1 = 0.7952 pounds)

(Reporting by Anya George Tharakan in Bengaluru; Editing by Shounak Dasgupta)