Continuing Coverage of Dow Jones Story
As recently as earlier this week, the law firm Holme Roberts & Owen were viewed as pretty much a lock on voting for the bid of Rupert Murdoch and News Corp. (NWS-A) for Dow Jones (DJ).
Now reports are coming out that they've changed their position and are looking at voting against the deal. The reason for the change in mind? They believe that the super-share holders are "entitled" to a premium price above what the regular share holders would get. Even some of the rich want entitlements.
If the decision holds, it could potentially be a deal breaker. But to me that would be irresponsible from a overall point of view. If this is true, and the action is taken to reject the bid and the deal is scuttled, the shares of Dow Jones would plummet. Even if someone else came along and made another bid, it would never reach the heights that Murdoch's bid reached.
All of this is a bargaining ploy of course, but it's a dangerous one because the bid is so above what the company is worth, that it's improbable that Murdoch will raise it for the large percentage of owners of super shares. The Bancroft family alone owns 64 percent of them.
This is another way of saying it's all about the money for this part of the Bancroft family. The law firm manages the shares held in trust for children of the late Hugh Bancroft Jr., which represents 9.1 percent of the voting stock.
Related Coverage:
Brad Greenspan Makes Yet Another Proposal to Dow Jones
Bancrofts Meeting Monday to Discuss Selling Dow Jones Co.
Dow Jones Negotiations Winding Down: Tentative Agreement to be Presented to Bancroft Family
Final Stages of Dow Jones Negotiations May Start this Week - Companies to Meet
Here we go again: Another Bancroft Panics Over Dow Jones Being Bought by Rupert Murdoch
Rupert Murdoch Sends Message will Start Business Channel with or without Dow Jones
Rupert Murdoch Bid for Dow Jones Already Saving Them Jobs
Remember to Sign up for my feed, bizzbite and digg this!
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
» News Corp. Believes it has Votes to Seal Dow Jones Bid from ManagersRealm
Continuing Coverage of the Dow Jones StoryThe vote by the Bancrofts could be completed by Monday.According to a source close to the deal, News Corp. (NWS-A) believes it has the votes to seal the Dow Jones deal when the vote... [Read More]
Tracked on: July 27, 2007 10:21 PM | Permalink to Trackback