Wednesday, May 2, 2007
The big news today is Rupert Murdoch's surprise offer to buy the Wall Street Journal, although the basic information was released yesterday afternoon. The offering price of $60 reflects a 67% premium over market. Although there is speculation that other bidders will come forward, that high opening bid would discourage some. The bid was first received about two and a half weeks ago, and the Bancroft family, who own 27.7% of the stock but have 64.2% of the voting power, did not initially reject it, as they have other offers in the past. The statement released yesterday said that "slightly more than one-half" the voting power would oppose the deal. Murdoch described his offer as "friendly." See NYTimes, Rupert Murdoch Offers $5 Billion Bid for Dow Jones; WSJ, Murdoch's Surprise Bid:$5 Billion for Dow Jones.