KEY POINTS:
Rupert Murdoch said yesterday he had a "constructive" meeting with the Bancrofts to reassure the family that controls Dow Jones & Co that his US$5 billion ($6.8 billion) offer for the company would not undermine its flagship newspaper, the Wall Street Journal.
Murdoch and his son James met key members of the Bancroft family, which in total holds 64 per cent of the voting power in Dow Jones, for the first time in New York.
"We had a very long and constructive meeting," Murdoch said as he left the meeting at the offices of the Bancroft family advisers.
Reporters flanked both entrances to CBS's imposing "Black Rock" building, catching only a moment with the 76-year-old year old media mogul as he left.
One focus of the five hours of discussions was safeguards to preserve editorial independence at the Journal, which is a key concern for the Bancrofts - and editorial staff at Dow Jones.
The union representing over 2000 Dow Jones workers, the Independent Association of Publishers' Employees, said yesterday it had retained advisers to seek alternative bids that could better protect the publication's "unquestioned journalistic integrity".
Union representative Steven Yount said the process was started last Friday with a list of about half a dozen individuals with "the money and the integrity".
He did not identify target buyers, who have yet to respond.
The Murdoch meeting with the Bancroft clan included Christopher Bancroft, Leslie Hill and Elizabeth Steele, who are Dow Jones board members.
According to an earlier report in the Journal, the family was to be accompanied by Dow Jones chairman Peter McPherson, Bancroft trustee Michael Elefante and attorney Martin Lipton.
The tone of the meeting was expected to resemble more of a social gathering than a session for negotiations or deal-making, as Murdoch, the chairman and chief executive of media conglomerate News Corp, hoped to create a rapport with Bancroft family members, the newspaper said.
News Corp was willing to explore a policy similar to one that Reuters Group employs, giving a board of trustees the power to block any deal and prevent any one shareholder from owning more than a 15 per cent stake without the trustees' consent, the Journal reported, citing News Corp sources.
The Reuters arrangement will continue to be in effect after Canada's Thomson Corp completes a planned US$17.2 billion acquisition of the company.
Reuters competes with the Dow Jones Newswires service in providing financial news.
Last week the Bancrofts, a majority of whom initially objected to the deal, said they were willing to discuss conditions for selling the Journal while protecting its editorial independence.
Dow Jones shares were trading around US$60.39. Murdoch is offering US$60 a share.
- REUTERS
