By: E&P Staff
Dow Jones Director Dieter Von Holtzbrinck has resigned from the board in protest of Rupert Murdoch’s bid to buy the company, a U.S. Securities and Exchange Commission filing revealed today.
Von Holtzbrinck wrote that he could not recommend that the company sell to Murdoch, though the board voted to do so on Tuesday. He did not vote on the proposal to sell the company.
“Although I’m convinced that News Corp.’s offer is very generous in financial terms, I’m very worried that Dow Jones unique journalistic values will long-term strongly suffer after the proposed sale,” he wrote.
Von Holtzbrinck has been a director on the board since 2001 and he is an heir to the von Holtzbrinck publishing empire, reported The Wall Street Journal.
A full copy of the letter follows:
TO: DOW JONES DIRECTORS
FROM: DIETER VON HOLTZBRINCK
Stuttgart, July 19, 2007
sorry, that I couldn’t support the recommendation which got Board approval. Although I’m convinced that News Corp. offer is very generous in financial terms, I’m very worried that Dow Jones unique journalistic values will long-term strongly suffer after the proposed sale.
Listening to our lawyers, one has to vote for a deal which is in the best (financial) interest for the shareholders, except if one can prove that such deal bears risks for the company that overcompensate the financial profits.
I cannot prove that my worries are right. I can only refer to News Corp. business practices in the past, can only refer to Jim Ottaway’s article in the Journal, etc. I do not believe that the “Special Committee” can finally prevent Murdoch from doing what he wants to do, from acting his way.
Herewith I resign from the Board of Dow Jones, hoping that you, my highly respected colleagues and friends, can understand my decision.
All the best to you and for the Company,