Rupert Murdoch's News Corp has cleared an important hurdle in its takeover pursuit of Dow Jones & Co, winning board approval that sends the decision to the Bancroft family, the controlling shareholders.
Dow Jones said its board had voted to approve the $5 billion buy-out offer by Rupert Murdoch's News Corp. The approval is based on News Corp.'s offer of $60 per share in cash.
Despite the board's endorsement, the success of Murdoch's months-long quest for Dow Jones and its prize asset, The Wall Street Journal, remains far from certain.
The deal requires the approval of shareholders, including the Bancroft family which owns 64% of the voting power of the company. Some family members are openly hostile to the takeover bid and so far have failed in their efforts to find an alternative. The Bancroft family is to meet on Monday to consider the matter.
