Dow Rejection Won't Deflect Murdoch

Rifts in Bancroft family fairly beg to be exploited
By Peter Fearon,  Newser Staff
Posted May 3, 2007 8:44 AM CDT
Dow Rejection Won't Deflect Murdoch
Co., publisher of The Wall Street Journal, said Tuesday, May 1, 2007 it has received an unsolicited bid from Rupert Murdoch's News Corp. to buy the company for $60 per share, or $5 billion. (AP Photo/Mark Lennihan, file)   (Associated Press)

The Bancroft family's rejection of Rupert Murdoch's $5 billion offer for Dow Jones set the stage yesterday for a battle with other shareholders and the board of directors—as well as within the family itself. Without the family's controlling votes, the board would likely jump at the offer, a 67% premium over the company's closing price Monday.

And Murdoch might be ideally suited to exploit these tensions, the Wall Street Journal notes. The Bancroft clan is large and far-flung, and there are generational rifts, with younger members who might be swayed by a sweetened offer. Family members who want to hold out could also buy out those who don't. Murdoch hopes to meet with family members in coming weeks. (More Dow Jones stories.)

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