Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Wednesday, May 2, 2007

More on Murdoch's Bid for WSJ

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.

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