June 18, 2014 / 9:17 PM / in 4 years

News Corp board votes to extend poison pill provision

June 18 (Reuters) - News Corp’s board of directors voted to extend a poison pill provision it put in place to prevent hostile takeovers when the company controlled by Rupert Murdoch and his family split from its cable and entertainment properties last year.

News Corp said in a regulatory filing on Wednesday that the provision, triggered if someone acquires 15 percent or more of common voting stock, will last until June 18, 2015. It was originally set to expire on June 28, 2014.

In the event an acquirer becomes the owner of more than 15 percent or more of common voting shares, shareholders will get the right to purchase voting or non-voting shares at an exercise price.

News Corp is controlled by Murdoch and his family through a trust that has a 38 percent ownership stake of Class B shares with voting rights.

News Corp, which owns several newspapers, including The Wall Street Journal; book publishing house HarperCollins and other assets, including stakes in Australian pay-TV networks, separated from what is now 21st Century Fox in June 2013.

The company has a history of potential takeovers: In 2004, Liberty Media Corp’s John Malone quietly snapped up a 20 percent voting stake in the company. The move prompted Murdoch to swap his stake in DirecTV and other assets for Malone’s shares in News Corp. (Reporting by Jennifer Saba in New York; Editing by Jonathan Oatis)

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