News Corp, Dow Jones reach tentative $5 bln deal: report

By Robert MacMillan

NEW YORK (Reuters) - Dow Jones & Co. Inc. Chief Executive Richard Zannino tentatively agreed on Monday to a $5 billion takeover bid by News Corp., though the company's controlling Bancroft family remains divided on the deal, the Wall Street Journal reported.

The agreement in principle will be put to the full Dow Jones board on Tuesday evening, said the newspaper, which is Dow Jones' flagship publication and the asset most coveted by News Corp. Chairman and Chief Executive Rupert Murdoch.

Michael Elefante, the Bancroft family's lead trustee, has scheduled a meeting for Thursday to present the agreement to all Bancroft family members before asking for their final vote, the Journal said on its Web site.

Elefante is expected to give the family several days to make a decision, suggesting a final resolution could be achieved next week, it added.

Representatives for the Bancrofts and News Corp., owner of Fox News, the New York Post and a sprawling global media empire, declined to comment. A Dow Jones spokeswoman also declined to comment, while several top executives declined to comment or did not respond to messages seeking comment.

The Bancroft family controls 64 percent of Dow Jones's voting power and has been divided over Murdoch's bid.

Some Bancrofts -- as well as many Dow Jones reporters and editors -- had opposed the offer because they think Murdoch would interfere with the company's news operations to benefit his business interests.

Other members of the family, along with many ordinary shareholders, were attracted by the $60-per-share price that News Corp. offered, which was a 65 percent premium to Dow Jones' market price when the deal was announced.