Bancroft Trustees Might Hold Final Say on Dow Jones Sale -- WSJ

The final decision on whether or not to accept Rupert Murdoch's $5 billion offer for Dow Jones might reside not with the Bancroft family, which holds a 64% interest, but with their legal trustees, according to the Wall Street Journal. Hemenway & Barnes, the family's longtime lawyers, are trustees on funds that control a majority of the Bancrofts' stake. "The vote really resides with them," said a Bancroft who favors the sale. The 35 adult Bancrofts are divided on the sale, but less than half their votes would be required for the sale to go through, since 20-25% of the 36% stake held by non-Bancrofts is expected to be cast in favor. Last week, the Dow Jones board reached agreement with Murdoch's News Corp. on safeguards to protect the editorial integrity of the Journal. The sides are still negotiating on price, though Murdoch has said he will not sweeten his original $60-per-share offer. Once the price is finalized, the Bancrofts will be polled. Michael B. Elefante, a Hemenway & Barnes partner and the family's lead trustee, is believed to favor a sale, and his opinion is valued by family members. "If Elefante tells them that the agreement on editorial independence can be enforced and the principles are protected, they'll support him," said an unnamed Bancroft who supports the sale.

Sources: Wall Street Journal
Commentary: Dow Jones, News Corp. Reach 'Editorial Pact' • Murdoch: Dow Jones Bid Stays at $60 per Share • Murdoch and Dow Jones Near Deal -- WSJ
Stocks/ETFs to watch: Dow Jones & Company Inc. (DJ), News Corp. (NWS). Competitors: Reuters Group PLC [ADR] (RTRSY). ETFs: PowerShares Dynamic Media Portfolio ETF (PBS)
Conference call transcripts: Dow Jones Q1 2007, News Corporation F3Q07

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