Dow takes no action on Murdoch $5B bid

The Dow Jones & Co. board Wednesday took no action on Rupert Murdoch`s $5 billion offer, the U.S. financial publishing company said.

In a statement after a board meeting, the board said it had confirmed that roughly 80 percent of the controlling Bancroft family`s voting power opposed the $60-a-share offer, representing about 52 percent of the full company`s voting power.

The family`s rejection will likely upset Dow Jones`s non-family shareholders, many of whom are pressing for a sale, Dow Jones`s Wall Street Journal reported.

The newspaper said the Bancroft family`s controlling margin is thin and the family is large and far-flung. Further, family members did not know they would be under pressure to express a preference on the offer until Tuesday when the CNBC cable network broke the news.

A defection by a relatively small number of family members could swing the vote the other way, the newspaper said.

And board delays could help Murdoch to negotiate with individual family trustees, it said.

Source : http://news.monstersandcritics.com