Christopher Bancroft Lobbying to Nix Murdoch Deal

Christopher Bancroft, a member of the family that holds a controlling stake in Dow Jones, is canvassing hedge funds and private equity firms in an eleventh-hour attempt to thwart Rupert Murdoch's $5 billion takeover of the company. The family and the Dow Jones union have responded with apprehension to the prospect of a Murdoch stewardship of the Wall Street Journal, but no viable rival bid has emerged. According to the Journal, Bancroft's object is to buy up super-voting shares, which give the holder ten votes per share rather than one. His campaign is unlikely to target common shares, which could be a serious disappointment to their holders -- many of whom have been anticipating a buyout at $60 per share or higher. The Journal says Bancroft probably does not have time to gather the shares he needs, since Dow Jones and News Corp. are concluding due diligence. He could still get his way, however, if the Bancrofts insist on a sweetener to make the transaction more palatable. Murdoch has indicated he will not raise his bid, creating two possible scenarios: Bancroft naysayers like Christopher and his cousin Leslie Hill could obstruct acceptance of the offer as it stands, or Murdoch could take it off the table.

Sources: Wall Street Journal
Commentary: Dow Jones' Bancrofts: Time to Get Off The Pot • Murdoch Frustrated Over Dow Jones Talks • Burkle and Greenspan Present Alternatives to Murdoch Bid for Dow Jones
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)
Earnings call transcripts: Dow Jones Q1 2007, News Corporation F3Q07

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