Dow Jones to pay News Corp. if deal caves
By Leah McBride Mensching, Monday 10 September 2007 at 22:25 :: Media Ownership :: #534 :: rss
Should either company decide to terminate the $5.2 billion merger deal, Dow Jones & Co. would have to pay Rupert Murdoch's News Corporation $165 million, according to a regulatory filing revealed Monday.
The fee imposed on Dow Jones, should News Corp.'s takeover bid not go through, was revealed in a filing made in connection with shareholder meetings to complete the merger.
Dow Jones also said bankers heard from 21 potential buyers and never received a bid competing with Murdoch's offer of $60 per share, according to a report by Bloomberg. Murdoch's bid was accepted last month, putting News Corp. in charge of Dow Jones's flagship newspaper, the Wall Street Journal. The sale is expected to be complete in the fourth quarter this year.
According to the filing, Dow Jones will have to pay the fee if it terminates the agreement to accept another proposal, or if the deal is rejected by shareholders. The company will also be forced to pay up to $25 million in expenses if either company abolishes the agreement.
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