U.S. News

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.