Journal Owners Rebuff Murdoch Offer

Dow Jones turns down News Corp.'s unsolicited buyout bid
By Colleen Barry,  Newser Staff
Posted May 2, 2007 9:36 AM CDT

(Newser) – The Bancroft family, which controls Dow Jones, rejected Rupert Murdoch's $5 billion offer for the media giant late yesterday—but their divided response to the unsolicited bid signalled to both News Corp. and other would-be buyers that a different offer might be acceptable.

The Bancrofts' 64% voting majority is distributed among some 20 family members; a spokesman said just over half of their shares would oppose the offer. News of the bid, which the Financial Times said was submitted two weeks ago, sent Dow Jones shares up 57% yesterday, and other newspaper stocks also rallied.

Possible suitors include the New York Times, Washington Post, Gannett, and GE.