Dow Jones Will Accept Rupert Murdoch’s Bid

Dow Jones Will Accept Rupert Murdoch’s Bid
At least according to a Dow Jones analyst, who can't guarantee anything above a two-thirds probability
May 25th, 2007

Despite reports yesterday that the Bancroft family was feeling “eh” about Rupert Murdoch’s bid for Dow Jones, reports today suggest the family is going to take Rupert up on his offer!

Okay, we tricked you: The “reports today” are about what analysts think, and who trusts those guys? Reports Canada’s Financial Post:

William Bird, a Citigroup analyst, predicts News Corp. will hike its bid for Dow Jones & Co. (DJ/NYSE) to US$64, up from the original offer of US$60 in April. There is a 65% chance the offer will then be accepted, he says.

If the News Corp. bid is rejected, he expects Dow Jones shares will trade down to US$36, where it was before the takeover announcement emerged.

So let’s flip back to Chris Bancroft’s statement to (of course) the Wall Street Journal: “I’m open to any situation that benefits the Wall Street Journal and Dow Jones and its shareholders. At the moment, I don’t see anything that would do that.” And there’s Jim Ottaway, who owns 6 percent of Dow Jones voting shares, who told Reuters’ Robert MacMillan, “It’s the principle, not the price …. It’s the person, not the price,” in his refusal to sell out to Murdoch.

So there you have it: Rupert is one step closer to taking control of Dow Jones. And Rupert has just 8 million steps remaining.

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