Murdoch Acquisition Of Dow Jones Now In Question
July 27, 2007 at 10:56 AM (PT)
It looks like RUPERT MURDOCH may not get DOW JONES and THE WALL STREET JOURNAL after all. The paper is reporting that the DENVER branch of the BANCROFT family, DOW JONES & CO.'s controlling shareholder, is going to vote against accepting NEWS CORP.'s $60-a-share offer. Apparently, the DENVER trust faction of the family, who owns 9.1% of DOW JONES' voting stock, wants to pressure MURDOCH's empire into raising its offer by anywhere between 10 and 20% for class B shares, which NEWS CORP. has indicated it will not do.
The BANCROFT family, owners of the controlling shares in DOW JONES, has been debating whether to accept MURDOCH's bid for the company, which owns the WALL STREET JOURNAL RADIO NETWORK, BARRON'S, SMART MONEY, the DOW JONES indexes and wire service, and OTTAWAY NEWSPAPERS as well as the JOURNAL. The fact that this report comes from a publication owned by DOW JONES may cause some observers to question its veracity, but the inescapable conclusion here seems to be that this is coming down to a matter of who blinks first.