|
MUMBAI: US
media conglomerate News Corp has made what it calls a friendly
offer for American publishing and financial information firm
Dow Jones, owners of the Wall Street Journal.
It
is looking to acquire all of the outstanding shares of the
company for $60 per share in cash, or in a combination of
cash and News Corp stock. This amounts to around $5 billion.
However
The Bancroft family, which controls Dow Jones have said that
they will oppose the bid for the media group.
Michael
Elefante, a member of the Dow Jones board and a lawyer representing
the Bancroft family, said in a statement that members of the
family will "vote shares constituting slightly more than
50 per cent of the outstanding voting power of Dow Jones against
the proposal."
The
price of $60 a share in cash or stock was a 65 per cent premium
to the company's share price before the news broke.
Dow
Jones shares immediately rose by over 50 per cent on News
Corp's announcement. Murdoch says that he is prepared to be
patient.
If
he succeeds, then he gets access to WSJ's talent pool
and expertise prior to the Fox Business Channel being launched
later this year. CNBC has a partnership with Dow Jones and
this acquisition, should it go through, would help break it
off. Reports further add that Murdoch has been looking to
acquire either Dow Jones or The Financial Times for
a while now.
| 
