'Financial Times': Murdoch Still Cool to Bancrofts' Demands

By: E&P Staff Rupert Murdoch has indicated that proposals received from Dow Jones? board of directors on Friday "aimed at protecting the editorial independence of The Wall Street Journal newspaper in the event of a sale to News Corp are not acceptable, according to people familiar with the matter," the Financial Times reports today.

"The move late on Friday by the Dow Jones board, just days after the Bancroft family which controls Dow Jones handed directors responsibility for the potential sale of Dow Jones, was the first step in the board?s direct negotiations with News Corp over its $5bn offer for Dow Jones and its crown jewel, the WSJ. ...

"The editorial proposals have been a key stumbling block in Mr Murdoch?s effort to take control of the company since the Bancroft family, which holds 64 per cent of Dow Jones? voting shares, rejected News Corp?s $5bn offer nearly two months ago."

FT explains: "At the meeting in early June, the family wanted to retain control over naming the Journal?s publisher, responsible for running the business side of the newspaper, seen as unacceptable by News Corp if it pays to acquire all of Dow Jones, according to people familiar with the talks.

"The proposals from the Dow Jones board still include a similar suggestion, according to people familiar with the plan."


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