Dow Jones Takes No Action on Murdoch Bid: Source

Dow Jones's board met on Wednesday but took no action on a $5 billion bid by Rupert Murdoch'sNews Corp. to buy the company, a source familiar with the matter said.

During its regularly scheduled meeting, the board discussed several issues, including the prospect of adopting a change-of-control package for executives, the Wall Street Journal reported separately on its Web site.

The board has no plans to formally consider the offer unless opposition to the bid by the controlling shareholders -- the Bancroft family -- falls below 50 percent of the overall voting power, the paper reported.

But while the board is taking no action on the bid, the paper said several members were surprised that the Bancrofts lodged their opposition to such a rich premium.

Murdoch offered $60 per share for the company, a 65 percent premium to the stock's closing price on the day before the bid was made public.

The board previously has said that it would not act on Murdoch's bid after a trustee for the Bancroft family said that most of the family opposes it.

The Bancrofts have met several times in telephone conferences to discuss the bid, according to published reports. Some oppose the offer outright, while others want more information, those reports said.

A Dow Jones representative could not be reached immediately.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • 4 Stocks, 4 trades: Autos, malls & Pier 1

    The FMHR traders take their positions on four stocks making news today, including Ford and General Motors down after reporting March auto sales, and the action in mall stocks.

  • Year's hottest headed for trouble?

    Sam Isaly, OrbiMed Advisors managing partner, says valuations are more than they used to be but adds, they're not crazy, they're sensible. He shares his view of the biotech sector.

  • Nike CEO on RFRA

    Many CEO's are speaking out on Indiana's Religious Freedom Restoration Act including Nike CEO, Mark Parker.