Herbert Smith has secured a lead role advising BSkyB on News Corporation's bid to purchase the remaining share capital in the satellite broadcaster, valuing the company at more than £12bn.

Allen & Overy (A&O) and Skadden Arps Slate Meagher & Flom are advising News Corp on its bid to take full control of BSkyB by acquiring the remaining 60.1% of shares in the company, with BSkyB today rejecting an initial offer of £7 a share.

Herbert Smith corporate partners Stephen Wilkinson, Malcolm Lombers (pictured) and James Milne are leading the firm's team advising BSkyB, with support from competition partner Elizabeth McKnight and US partner Jim Wickenden.

Skadden London corporate partners Michael Hatchard and John Adebiyi, alongside New York M&A partners Lou Kling and Howard Ellin, are advising News Corp, which owns The Sun, The Times and News of the World newspapers and has a market capitalisation of around $35bn (£24bn).

A&O is advising the media giant on UK corporate law with a team led by City corporate partner Don McGown.

BSkyB and News Corp are now in discussions to achieve a mutually agreeable price and have also undertaken to proceed with the regulatory process in anticipation of the transaction going ahead.

It is understood that Cleary Gottlieb Steen & Hamilton and Hogan Lovells are advising News Corp on competition approvals, while Bird & Bird is also thought to have roles on the deal.

This is the second deal Herbert Smith has advised BSkyB on this month, after taking a role on the £160m acquisition of Virgin Media Television from Virgin Media, fielding a team led by corporate partners Stephen Wilkinson, James Milne and Nick Elverston.

A&O has traditionally acted for BSkyB on much of its corporate work, including advising on the 2008 talks with Tiscali to take on Tiscali's UK assets. A&O also advised the broadcaster on its defence of claims from Virgin Media that it flouted competition laws by taking a 17.9% stake in ITV in 2006.