UPDATE 2-UK's Currys rejects takeover bid from Elliott Advisors

(Changes headline, recasts lead, adds comments and quotes from Currys in paragraph 2-3, cites proposed bid price in paragraph 3, adds background on company in paragraph 6)

Feb 17 (Reuters) - British electricals retailer Currys confirmed on Saturday that it had rejected a proposal from investment management firm Elliott Advisors to acquire the company.

"The Board of Currys considered the Proposal, together with its financial advisers, and concluded that it significantly undervalued the Company and its future prospects," a statement from Currys board said.

As a result, the board unanimously rejected the proposal on Feb. 16, it said.

A report by Sky News said the offer was for 700 million pounds ($881.9 million).

Last month Currys forecast full-year profit ahead of market expectations after stable gross margins and cost savings offset a fall in underlying sales over the Christmas trading period.

The British retailer of technology products and services, operates online and through more than 820 stores in eight countries with around 28,000 employees.

Elliot Advisors earlier declined to comment on the report.

Last year U.S.-based Elliott also made bids for fashion chain Reiss and cosmetics retailer The Body Shop, which did not go through.

($1 = 0.7938 pounds) (Reporting by Surbhi Misra and Baranjot Kaur in Bengaluru, additional reporting by Farouq Suleiman; Editing by Mark Heinrich, Jan Harvey and Sharon Singleton)