Sky takeover: Rupert Murdoch's 21st Century Fox tables bid for TV broadcaster

Broadcaster Sky has announced it in takeover negotiations with 21st Century Fox after receiving a tabled approach worth around £18bn from the US media giant founded by Rupert Murdoch.

Sky plc said the two companies had reached an agreement on an offer price of £10.75 per share but other terms remained under discussion.

The company issued a statement after shares in Sky rose 32% to 1040 amid rumours of takeover interest from Fox, which is already Sky's majority shareholder.

Rupert Murdoch, seen with his wife Jerry Hall, is pursuing the 60.9% of Sky that Fox does not already own. Credit: PA

The FTSE 100 firm said in a stock market announcement there was no certainty that an official offer will be made.

21st Century Fox, which currently owns 39.1% of Sky, tabled a proposed offer representing a 40% premium of Sky's share price of 759.4p on Tuesday.

Sky said it has formed an independent committee to consider the proposal as it looks to protect the interest of shareholders.

The broadcaster announced in October that sales rose 5% in the first quarter, driven by growth in Germany and Austria, while UK revenues grew 5% to £2.1 billion.

Takeover rumours surfaced when James Murdoch returned to Sky as chairman in January. Credit: PA

Murdoch's previous attempt to snap up Sky five years ago stalled when his firm became embroiled in the phone-hacking scandal.

The bid was eventually abandoned because it was "too difficult to progress in this climate".

The return of Murdoch's son James to Sky as chairman in January raised the prospect of a fresh Fox takeover bid for the broadcaster.

James Murdoch took up the role after previously operating as the firm's chief executive between 2003 and 2007.

He resigned from that role after the scandal that erupted following phone-hacking at the Murdoch-owned News of the World.