Bancrofts to consider Muroch''s $5 billion bid for Dow Jones

01 Jun 2007

1

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.

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