News Corp to act on U.S. ownership rule breach: WSJ

Wed Apr 18, 2012 4:48am EDT

A sign is seen in front of the the NewsCorp building in New York February 8, 2012. REUTERS/Brendan McDermid

A sign is seen in front of the the NewsCorp building in New York February 8, 2012.

Credit: Reuters/Brendan McDermid

(Reuters) - News Corp (NWSA.O) is expected to suspend half the voting rights of its non-American shareholders to comply with a U.S. law that limits foreign ownership, after the company found it had breached the rule, Wall Street Journal reported, citing people familiar with the situation.

During a company review, News Corp found voting stock held by foreign investors had risen above the 25 percent limit set by the Communications Act of 1934, the paper said.

To deal with the breach, the media company will suspend 50 percent of the voting rights of B class voting shares held by non-American shareholders. The suspension will last until the company is in compliance with the ownership limits, the paper said.

News Corp owns Dow Jones & Co, publisher of the Wall Street Journal.

News Corp would not comment on the report.

(Reporting by Sakthi Prasad and Ranjita Ganesan; Editing by Hans-Juergen Peters)

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