This is good news. NewsCorp made commitments to shareholders and took the first opportunity to renege on these commitments.
Rupert Murdoch wants to maintain family control over his company and it appears he will do anything and promise anything he needs to to get what he wants.
Good news for governance that NewsCorp will be forced to address these issues in court.
Onésimo Alvarez-Moro
See article:
A Delaware judge has ruled that a trial against the News Corporation can proceed in a lawsuit filed by 13 institutional pension funds that accused the company of reneging on an agreement to let shareholders vote on a takeover defense.
Last year, the News Corporation promised shareholders that, in exchange for their approval of the company's move to Delaware from Australia, any poison pill adopted after the move would be allowed to expire in a year unless shareholders voted on an extension.
A poison pill makes a hostile takeover of a company prohibitively expensive by increasing the number of shares to be acquired.
Shortly thereafter, the Liberty Media Corporation increased its News Corporation stake to 17 percent, and the News Corporation adopted a poison pill.
See full Article.
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