Dow Jones has agreed on purchase of News Corp for $5 billion
The publisher of American financial newspaper Wall Street Journal Company Dow Jones and Co. Inc. has agreed on merge with media corporation News Corp. for 5 billion dollars.
As Reuters referring to the application of John Prestbo, editor and executive director of Dow Jones Indexes, informs Bancroft family, which is supervising 64 % of Dow Jones’ votes, has accepted News Corp’s offer.
There was information that in case of in default News Corp. will not increase the offer on Dow Jones purchase if the level of shareholders’ support remains at the present level. On May, 3rd 2007, Dow Jones has officially declared about refusal from News Corp’s offer on merge for 5 billion dollars. The representative of Bancroft has informed that they will vote against merge.
However, Dow Jones’ board of directors has declared about the intention to carry on negotiations with News Corp., despite of the shareholders’ decision, and recommended Bancrofts to accept the offer on July, 18th, 2007. It has also become known, that about the third of Bancroft family members accept News Corp’s offer.
Earlier the intention to get Dow Jones was declared by the American businessman AM ET MySpace founder Brad Greenspan, who got the support from five investment groups, interested in purchase of company’s shares. Intel Corp., Intel Capital, Apex Partners, division Softbank Corp., company Jana Partners and Trafelet can play the role of investors.
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