New York – Media baron Rupert Murdoch did not win the support of a solid majority of the family members who control the Wall Street Journal by a Monday deadline, casting doubt on the prospects for his $5 billion takeover bid.
More than five hours after the 2 p.m. deadline for members of the Bancroft family to tell their lawyers how they were voting, their Boston firm still hadn’t issued a statement.
Instead, the Journal reported they were still haggling with holdouts who were angling for a higher price than the $60 a share offered in April by Murdoch’s News Corp.
Doubts about a successful acquisition mounted as people involved in the process put the level of support by various Bancroft family trusts at about 28 percent of the total voting power in Journal parent Dow Jones & Co.
All told, the family controls 64 percent of the power in Dow Jones through super-voting Class B shares.
But a News Corp. spokesman said it was “highly unlikely” Murdoch would proceed without more family support, since small Class A investor often don’t bother to vote in such referendums, leading to an expensive and rhetoric-filled fight.
The uncertainty put pressure on Dow Jones shares, which fell $2.89 Monday, or more than 5 percent, to close at $51.56.
