Rupert Murdoch is going after the Wall Street Journal...
bloomberg.com
Dow Jones Shares Surge After CNBC Reports News Corp. Makes Bid
By Cecile Daurat and Leon Lazaroff
May 1 (Bloomberg) -- Shares of Dow Jones & Co., owner of the Wall Street Journal, surged 58 percent after CNBC reported News Corp. made an unsolicited takeover bid for the company.
The stock jumped $20.95 to $57.28 at 11:22 a.m. in New York Stock Exchange composite trading. The shares had fallen 4.4 percent this year before today. The last time the shares traded above $57 a share was in 2002.
Rupert Murdoch's News Corp. offered to buy New York-based Dow Jones in a letter sent to the company's board two weeks ago, CNBC reported, citing people familiar with the decision. The Bancroft family, which controls the company, is still deciding whether to accept, CNBC said. The offer would be a 65 percent premium to yesterday's close.
``A $60 bid for Dow Jones has to be considered very seriously,'' said Michael Price, president of MFP Investors in Short Hills, New Jersey, which owns 351,000 Dow Jones shares. ``Murdoch sees the potential of tremendous economics of scale putting the news organizations together. If true, this really would be unbelievable.''
Dow Jones spokesman Howard Hoffman didn't return calls seeking comment. Andrew Butcher, a spokesman for News Corp. also didn't return calls.
Dow Jones last month said first-quarter profit fell 63 percent after revenue at the Wall Street Journal declined and the company sold six community newspapers.
To contact the reporter on this story: Leon Lazaroff in New York at llazaroff@bloomberg.net .
Last Updated: May 1, 2007 11:32 EDT |
