Family Snubs News Corp. Bid for Dow Jones & Co. Rupert Murdoch, owner of media conglomerate News Corp., made an unsolicited $5-billion takeover offer for Dow Jones & Co., owner of The Wall Street Journal . The media mogul's bid of $60 a share is 67 percent above Dow Jones' recent market value.
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Family Snubs News Corp. Bid for Dow Jones & Co.

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Family Snubs News Corp. Bid for Dow Jones & Co.

Family Snubs News Corp. Bid for Dow Jones & Co.

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MELISSA BLOCK, Host:

This is ALL THINGS CONSIDERED from NPR News. I'm Melissa Block.

ROBERT SIEGEL, Host:

But, as NPR's David Folkenflik reports, the family that controls Dow Jones is saying no dice.

DAVID FOLKENFLIK: So by many measures, a $5 billion offer to buy Dow Jones would be good news. It even sent most other newspaper stocks higher today. John Linehan manages a mutual fund for T. Rowe Price, a firm which owns 15 percent of Dow Jones stock.

JOHN LINEHAN: It's one of the largest shareholders in Dow Jones obviously. You're elated to see when others see the same value in a company that you do.

FOLKENFLIK: You might think that 15 percent would entitle T. Rowe Price to have a say on whether to approve the deal with News Corp., but it doesn't.

LINEHAN: You know, as much as we can opine as to what we think the appropriate course of action is, it really is a decision that at the end of the day will be made by the Bancroft family and by the board.

FOLKENFLIK: Unidentified Woman: Okay. Go.

DAVID FABER: Unidentified Man #2: Yup.

FABER: News Corp., the giant media company controlled by Rupert Murdoch has made an unsolicited $60 a share all-cash offer for Dow Jones, the publisher of The Wall Street Journal.

FOLKENFLIK: Dow Jones owns the journal, but also owns a financial newswire, Barron's business publication, the Marketwire online service and the Far Eastern Economic Review. If a sale went through, viewers could expect to see the journal's and other Dow Jones reporters disappear from CNBC's programs and materialize instead on Fox Business Channel. John Linehan of T. Rowe Price says Dow Jones could pay a heavy price if its board rejects the News Corp. offer as it is now expected to do.

LINEHAN: If the Bancrofts aren't going to sell to News Corp. or someone else today, they're probably never going to sell. And at that point it's a very different game in terms of what your investment thesis is.

FOLKENFLIK: David Folkenflik, NPR News.

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