Dow Jones agrees to $5 billion News Corp. buyout: WSJ

[Zenlitened]

Source: Marketwatch.com

By Alan Doyle
Last Update: 11:12 PM ET Jul 16, 2007

SAN FRANCISCO (MarketWatch) -- Rupert Murdoch's News Corp. has reached a tentative agreement to buy Dow Jones & Co. at its original offer price and the agreement will be submitted to the full Dow Jones board on Tuesday night, The Wall Street Journal reported late Monday. The deal must also be approved by the Bancroft family, which controls 64% of Dow Jones' voting stock, and whether the Bancrofts will support the deal is too close to call, The Journal said.

Read more: http://www.marketwatch.com/news/story/dow-jones-agrees-5-billion/story.aspx?guid=%7B94F7230C-86AE-4A1B-80E4-EA0B247E6B97%7D

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Here's more, direct from WSJ:

News Corp. Reaches Tentative Agreement to Buy Dow Jones

By SARAH ELLISON (Wall Street Journal)
July 16, 2007 10:56 p.m.

News Corp. reached a tentative agreement for the purchase of Dow Jones & Co. at its original $5 billion offer price. The deal will be put to the full Dow Jones board tomorrow evening for its approval, said people familiar with the situation.

In what could be the final round of talks, this afternoon negotiators from News Corp. and Dow Jones -- including Chief Executive Richard Zannino, company advisers and two independent directors -- reached an agreement in principle on a deal first proposed by News Corp. in mid-April. News Corp. Chairman Rupert Murdoch resisted pressure from Dow Jones to raise his initial $60 a share offer, which represented a 67% premium to where the Dow Jones stock was trading before news of the offer became public.

(snip)

The deal still faces its biggest hurdle -- getting approval from the Bancroft family, which controls 64% of Dow Jones's voting stock. Mr. Zannino has indicated to News Corp. that the family's position on the deal is too close to call, according to a person who spoke to him.

Michael B. Elefante, the Bancroft family's lead trustee, has scheduled a meeting for Thursday at which he would present the agreement to all Bancroft family members before asking for their final vote. Mr. Elefante is expected to give the family several days to make a decision, suggesting a final resolution could be achieved some time next week.

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http://online.wsj.com/article/SB118463978304868582.html?mod=moj_latest_news