Dow Jones receives alternate bids

13 July 2007

Though it has been in talks for a takeover by Rupert Murdoch's News Corp, Dow Jones & Co has received alternate bids from US supermarket tycoon Ron Burkle and internet entrepreneur Brad Greenspan.

Ron Burkle and Brad Greenspan are said to have presented a range of alternatives to Rupert Murdoch's $60 per share offer for Dow Jones & Co., but the financial computation is far from over.

Burkle and Greenspan had met with members of Dow Jones' board committee in New York late yesterday afternoon to jointly discuss the possibility of a rival bid. (See: Potential new bidders meet Dow Jones) from over.

The Bancroft family that controls 64 per cent of the voting shares in Dow Jones has the option to choose an outright sale to News Corp. for more than $5 billion or a partial sale to an investment group that would maintain its independence.

Unhappy with a possible merger with Rupert Murdoch's News Corp, the employees of Dow Jones has been keen to rope in other investors to make a possible bid. The main union at Dow Jones that represents some 2,000 employees, the Independent Association of Publishers' Employees (IAPE), had said an unnamed internet entrepreneur and a Wall Street group were considering putting up a rival bid.

The union had held talks with Burkle's Yucaipa Cos. about a bid and had earlier named Burkle, who had made an unsuccessful attempt to buy the Tribune last year. (See: Dow Jones likely to attract a bid from rival groups) The unions had also met with legendary investor Warren Buffett for a possible take over offer, who declined the invitation.