Bancrofts to consider Muroch''s $5 billion bid for Dow Jones
01 Jun 2007
Mumbai:
The Bancroft family that controls Dow Jones &
Co said for the first time it would consider the offer
by Rupert Murdoch''s News Corp for the publisher of the
Wall Street Journal, dropping its outright opposition
to his $5 billion bid.
The family, which controls 64 per cent of Dow Jones''s
voting rights, said it would also look at, offers from
other bidders as well.
Dow Jones in a separate statement said the board would
consider News Corp.''s $60-a-share offer and other approaches.
"The family has reached consensus that the mission
of Dow Jones may be better accomplished in combination
or collaboration with another organisation, which may
include News Corporation," the Bancrofts said in
a statement.
The family said it would meet with Murdoch and News
Corp. representatives to see if they can find a way
to protect the editorial independence of Dow Jones after
a sale.
A date for the meeting has not yet been set, but the
expectation is that an initial meeting would take place
in a timely manner, said a source close to the Bancrofts.
"We are grateful that the Bankcroft family has
agreed to our suggestion to meet," said News Corp.
spokesman Andrew Butcher. "We look forward to sitting
down with members of the family in the near future."
Most of the Bancroft family members have opposed the
bid over worries that an acquisition by Rupert Murdock,
who is notorious for his interference with the way its
reporters cover the news, would tarnish the journal''s
reputation
Analysts say the sudden change in attitude may be due
to the absence of a better offer than News Corp.''s.
Dow Jones, an over-a-century-old publisher of financial
news, is known for its meticulous attempts to present
news objectively.
However, Dow Jones, like all other newspaper publishers
in the US and elsewhere, is suffering from a slowdown
in advertising sales and other problems as advertisers
and readers shift their attention to the internet.
Murdoch, an Australian-born press baron, publishes the
New York Post and British newspaper the Times. He, however,
built his media empire with a heavy reliance on celebrity
scandal news and often flamboyant, eye-catching headlines
and stories.
Some Bancroft family members still do not favour Murdoch
controlling Dow Jones which, they fear, would erode
the company''s reputation for reliable business news.
The
Independent Association of Publishers'' Employees, which
represents Dow Jones employees, still opposes the bid,
said Steve Yount, the group''s president.
But News Corp.''s offer of a 65 per cent premium to the
company''s share price before Dow Jones made the bid
public is a persuasive price for the company''s outside
shareholders.