Dow Jones indicates tentative acceptance of News Corp offer

17 July 2007

New York: According to a report in The Wall Street Journal (WSJ) Rupert Murdoch''s News Corporation has arrived at a tentative agreement on its takeover offer for Dow Jones.

According to the report, Richard Zannino, chief executive, Dow Jones yesterday agreed tentatively to News Corp''s $5-billion takeover bid, though the company''s controlling Bancroft family remains divided on the deal. (See: Dow Jones board member opposes sale to News Corp) Zannino indicated to News Corp. that the Bancroft family''s position on the deal is too close to call.

At a lunch meeting on Monday between Murdoch and Zannino, Murdoch suggested the possibility of nominating former The Wall Street Journal managing editor Paul Steiger to the board of News Corp, the WSJ said, citing a source.

Michael Elefante, the Bancroft family''s lead trustee, has scheduled a meeting for Thursday to present the agreement to all Bancroft family members before asking for their final vote, the WSJ said on its website.

The in-principle agreement will be placed before the full Dow Jones board today and any deal would need the backing of the Bancroft family, which controls 64-per cent of the voting rights in the firm.

Some members of the family, along with many shareholders have been attracted by the $60-per-share price representing a 65-per cent premium to Dow Jones'' market price when the deal was announced (See: Bancrofts to consider Muroch''s $5 billion bid for Dow Jones).