Dow Jones seeks correction on WSJ story on Bancroft
NEW YORK (Reuters) - Dow Jones & Co Inc said on Thursday it was seeking a correction on a Wall Street Journal story on board director Christopher Bancroft, in the first public spat over the newspaper's reporting of Rupert Murdoch's buyout offer.
The Journal and its owner, Dow Jones, are in a dispute over whether the company was considering paying the legal fees of Bancroft to get further support for the buyout by Murdoch's News Corp.
The story, published in the Thursday edition of the newspaper, said the payment would be in exchange for Bancroft not using a trust he oversees to block the sale.
"Dow Jones is asking for a correction," said a Dow Jones spokeswoman.
She would not specify what was wrong.
A spokesman for the Journal said the newspaper had no plans to run a correction.
The spat comes a day after Dow Jones agreed to be bought by News Corp for $5.6 billion, including debt.
"It's been painted in the press now that negotiations are about Chris Bancroft getting his legal fees. That's not factual," Chris Bancroft told Reuters in a telephone interview.
Bancroft added: "This is about the family trustees, the family directors and other family members who have expended great amounts of money trying to process this deal."
The trust in question holds 13.2 percent of Dow Jones's voting power and a deal with Bancroft would increase to 50.6 percent the amount of family votes for the buyout, the newspaper reported.
The Bancrofts hold about 64 percent of Dow Jones voting shares. Family members holding about 37 percent of voting shares agreed on Tuesday to support the News Corp acquisition.
News Corp could not be reached for comment.
Christopher Bancroft had opposed Murdoch's bid for the company, expressing concern the media mogul would exert influence over the news operations to further his business interests.
In a memo sent to his business partner, Bruce Leadbetter, and attorney Pat Long, Bancroft said Dow Jones's payment of legal and advisory fees would ensure the family receives the same amount of money for its shares as other investors.
"What I want for my constituencies regarding the News Corp offer to merge with Dow Jones is: 1. The Wall Street Journal has the best editorial protection negotiable; 2. My family receives the same net for the Dow Jones Class B shares as the Dow Jones 'A' common shares received," he said in the letter seen by Reuters.
If Murdoch helps settle the fees, Bancroft said he would be willing to abstain from voting as trustee.
(Additional reporting by Paritosh Bansal)
