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Major Bancroft Branch to Nix Murdoch Offer

Family trust may force mogul to raise price for Journal

By Wesley Oliver,  Newser Staff

Posted Jul 27, 2007 12:09 PM CDT
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(Newser) – An important faction within the Bancroft family will vote against Rupert Murdoch’s controversial $5 billion deal for Dow Jones, instead demanding a significant increase of his offer. The Denver branch of the family, which owns a crucial 9.1% of Dow Jones voting stock, wants an extra $120 to $240 million to match their higher-valued voting shares, Dow's own WSJ reveals.

An insider from Murdoch’s News Corp. says the company is unwilling to bargain up. The Dow Jones board had rebuffed plans to value shareholder stock differently. The Bancrofts, Dow Jones’ majority voting shareholders, have been locked in tense negotiations this week over whether to accept the takeover—the outcome is still too close too call.

Co., which is considering a bid to be bought by Rupert Murdoch's News Corp., reported lower second-quarter profits Thursday, July 19, 2007 due to an accounting charge, but revenues and operating income rose. (AP Photo/Seth Wenig, file)
Co., which is considering a bid to be bought by Rupert Murdoch's News Corp., reported lower second-quarter profits Thursday, July 19, 2007 due to an accounting charge, but revenues and operating income...   (Associated Press)
Co. Monday afternoon, July 23, 2007. The Bancroft family owns 25 percent of Dow Jones but controls 64 percent of the shareholder vote through a special class of shares that have 10 votes each, versus one vote for the company's publicly traded shares. They are descended from the family...
Co. Monday afternoon, July 23, 2007. The Bancroft family owns 25 percent of Dow Jones but controls 64 percent of the shareholder vote through a special class of shares that have 10 votes each, versus...   (Associated Press)
Co. in early May, but last Thursday agreed to meet with him. (AP Photo/Jason DeCrow)
Co. in early May, but last Thursday agreed to meet with him. (AP Photo/Jason DeCrow)   (Associated Press)
Co. in early May, but last Thursday agreed to meet with him. (AP Photo/Jason DeCrow)
Co. in early May, but last Thursday agreed to meet with him. (AP Photo/Jason DeCrow)   (Associated Press)
Co. in early May, but last Thursday agreed to meet with him. (AP Photo/Jason DeCrow)
Co. in early May, but last Thursday agreed to meet with him. (AP Photo/Jason DeCrow)   (Associated Press)
Co. on Monday, meeting with key members of the Bancroft family in person to offer assurances that The Wall Street Journal would continue its long tradition of excellence under his stewardship. (AP Photo/David Karp)
Co. on Monday, meeting with key members of the Bancroft family in person to offer assurances that The Wall Street Journal would continue its long tradition of excellence under his stewardship. (AP Photo/David...   (Associated Press)
Co. Monday afternoon, July 23, 2007. The Bancroft family owns 25 percent of Dow Jones but controls 64 percent of the shareholder vote through a special class of shares that have 10 votes each, versus one vote for the company's publicly traded shares. They are descended from the family...
Co. Monday afternoon, July 23, 2007. The Bancroft family owns 25 percent of Dow Jones but controls 64 percent of the shareholder vote through a special class of shares that have 10 votes each, versus...   (Associated Press)
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Murdoch expects decision this week
Bloomberg

Hot button issues mar family negotiations
CNBC

Bancroft's sticking points are money, WSJ independence
New York Times

 
Rupert Murdoch • Wall Street Journal • Dow Jones • Bancroft family • shareholders • business • acquisition • takeover • News Corp

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