Continuing Coverage of the Dow Jones Story
The final pieces of the negotiations for Dow Jones & Co. (DJ) and News Corp. (NWS-A) are in place, as a tentative agreement has been reached by the two sides, according to the Wall Street Journal. Tonight the full Dow Jones board will look at the deal for approval.
A person at the meeting said Murdoch wouldn't increase his offering price for the company, which is already at a 67 percent premium to where the share price was when he offered. One interesting thing this insider said was Murdoch suggested the idea of having Richard F. Zannino, Dow Jones CEO, nominated to sit on the board of News Corp.
All of this is pretty much a mute point until the offer is approved or disapproved by the Bancroft family. News Corp. was told by Zannino that the positions of the family members, who are divided over the deal, is too close to call at this time.
The entire Bancroft family will be presented with the agreement on Thursday, where at that time they will be asked for a final vote on the issue. Lead trustee of the family, Michael B. Elefante, said he would suggest to the family to look at it for several days, and expects the answer to be given next week.
No matter which way this goes, it will cause a storm of comment and opinion, which it seems the Bancrofts recent more than the deal itself. They're in a no win situation with the bid made by Murdoch. If they say yes to the deal, people from the media will talk down on them. If they say no, more than likely the same will happen in a different way.
They also have the potential spector of lawsuits filed by shareholders, if no other reason is given than not personally liking the way Rupert Murdoch runs his businesses, is the reason for not accepting the deal.
It looks like they're very media adverse, and probably recent having to even be in the position to make this decision in the first place. They're grownups though, that's the price of ownership in a public company.
Related Coverage:
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
Ron Burkle, Brad Greenspan Exploring Purchasing Dow Jones & Co. Together
Rupert Murdoch Bid for Dow Jones Already Saving Them Jobs
Dow Jones says Story about Completed Deal with Murdoch False
Wall Street Journal Editor Supports Dow Jones, News Corp. Agreement
New York Times Article says if Murdoch buys Wall Street Journal, Dark Day for American Democracy
What the Real Battle over Dow Jones is About
Remember to Sign up for my feed, bizzbite and digg this!
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
» Bancrofts Meeting Monday to Discuss Selling Dow Jones Co. from ManagersRealm
Continuing Coverage of the Dow Jones StoryIn what should be a very spirited meeting, the Bancroft family, majority share holders in the Dow Jones CO. (DJ) will get together on Monday to discusss whether they will sell the company to... [Read More]
Tracked on: July 19, 2007 1:02 PM | Permalink to Trackback