By: E&P Staff
Dow Jones & Co. shares fell through Monday after an analyst predicted News Corp. Chairman Rupert Murdoch will soon drop his $5 billion offer for the company if the controlling Bancroft family stakeholders remain opposed to the deal.
Richard Greenfield of Pali Research told clients Murdoch will not “simply stand around endlessly waiting for the Bancroft family to change their minds.” News Corp. will likely back away from its bid within “the next couple of weeks,” he said, according to a report first carried by Dow Jones’ MarketWatch.
A half-hour before the 4:00 p.m. EDT New York Stock Exchange close, Dow Jones shares were trading at $50.89, down $2.06 or 3.93% on the day.
News Corp. shares, on the other hand, rose modestly on the news, up 16 cents or 0.68% to $23.85 at 3:39 p.m.
Also heading towards a loss for the trading day were two companies that reported weak April advertising revenue results on Monday: Gannett Co., and The McClatchy Co.
Journal Communications, which also reported weak April results, was modestly up just before the close of trading. Shares were trading at $13.83, up 9 cents or 0.66% on the day.