« Freedom Tower Violates Copyright, says Student | Main | New Organization Aims to Help Wisconsin Businesses Procure Government Contracts »

November 08, 2004

News Corp. Protecting Against Takeover

News Corp. took steps on Monday in an effort to protect against a possible hostile takeover from the U.S. Cable Company Liberty Media.

Last week, Liberty Media began a transaction that could increase its voting share in News Corp from 9% to 17%.  This move raised speculation that Liberty's chairman, John Malone, might be planning a takeover bid of News Corp.

In response to Liberty's actions last week, News Corp. announced on Monday that it would give its shareholders the right to buy one News Corp. share at half price for each share they own if any party buys a 15% interest in the company.  This offer, known as a "poison pill" would make it much more expensive for Liberty to purchase the shares it would need to in order to be successful in a takeover effort.

A spokesman for News Corp. said it was too early to tell what Liberty's intentions were, but that the company was not treating them as friendly.  The poison pill provision should help protect News Corp. if Liberty's intentions do turn out to be in conflict with News Corp.'s interest.

Posted by Matt Rutlin at 09:54 PM in Corporations | Permalink


TrackBack URL for this entry:

Listed below are links to weblogs that reference News Corp. Protecting Against Takeover:

» Spied! The next USDM Ford Escape from version of the
grille and bumper inlet and headlamps similar to that of the 2007 Expedition , the look is definitely more grown up and aggressive, with [Read More]

Tracked on Apr 27, 2006 5:11:38 AM

» Inventory Optimization Software Enters Mainstream - Early Adopters Reaping Major Benefits from early adopters
corporate adopters of inventory optimization software are achieving significant returns on their investments. [Read More]

Tracked on May 2, 2006 2:22:18 PM