Bancrofts back DJ sale to Murdoch
NEW YORK, July 31 (UPI) -- Enough Bancroft family votes support News Corp.'s $5 billion bid for Dow Jones & Co. to clinch the deal for the U.S. business publisher, reports said Tuesday.
A key Bancroft family trust changed its mind and accepted the $60-a-share offer, raising the voting shares to about 38 percent, enough to guarantee Rupert Murdoch's company the deal he wanted, Dow Jones's Wall Street Journal reported.
The trust holds 9.1 percent of Dow Jones's voting shares and had been holding out for a higher News Corp. offer.
When added to the nearly 29 percent stock held by public shareholders, who are expected to vote for the deal, News Corp. should have about 67 percent of shareholder votes, more than enough to win a majority of Dow Jones shares, the Journal reported.
News Corp. and Dow Jones scheduled board meetings for later Tuesday.
Dow Jones shares were up nearly 11 percent to almost $58 a share in mid-afternoon trading as investors reacted to news the deal appeared imminent.
News Corp. shares were up 0.18 percent to nearly $23 a share.
Murdoch plans to use the Journal in his new Fox business news channel, set to start in October.
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