(Nov 23): Independent Franchise Partners, a major investor in News Corp and Fox Corp, said on Wednesday it opposes media mogul Rupert Murdoch’s plan to recombine the companies.
The London-based investment firm told a special committee of News Corp’s board last month that it thinks a combination on its own would fail to realize the full value of the company, according to the Wall Street Journal, which first reported the news earlier in the day.
Independent, which owns about 7% of News Corp’s Class A shares and 6.4% in Fox Corp, is the second investor to express dissent over the plan.
News Corp investor Irenic Capital earlier this week suggested a spin-off of the media company’s digital real estate business or Dow Jones as an alternative to the merger.
News Corp declined to comment on the WSJ report, while Fox did not immediately respond to a Reuters request for comment.
Shares of News Corp rose about 1%, while those of Fox were up marginally in morning trade.
In October, Murdoch proposed to reunite his media empire nearly a decade after placing his print business in newly-created public entity News Corp and the TV and entertainment businesses under 21st Century Fox.
Several analysts have raised concerns over the merger, saying that News Corp needs to simplify by selling off or spinning off assets instead of recombining with Fox.
Speaking to Reuters on Monday, Huber Research Partners analyst Craig Huber had said that Irenic Capital’s displeasure with the merger would bring more investors forward.
“Maybe this will open up the floodgates,” he had said.
- What Will the Disney–Fox Merger Mean for Superheroes?
- Ukraine's new president comes face to face with Putin in Paris
- Donald Trump says he plans to end 'ridiculous' birthright citizenship with an executive order because 'You walk over the border, have a baby, congratulations – the baby is now a U.S. citizen'
- Channel 9, Fairfax reveal surprise $4b merger
- Sprint tells of business struggles in first day of T-Mobile merger trial
- Justice Department opens sweeping anti-trust investigation into whether major tech firms such as Facebook, Google and Amazon are monopolies that harass customers and hinder competition
- Australia's Westpac faces investor rage after exploitation payment scandal
- As downstream parishes watch, Corps reanalyzes expected impact of Baton Rouge drainage plan
- Proxy adviser ISS opposes plan by Hudson's Bay chairman to take firm private
- Boris Johnson admits 'it's a very tight race' as final poll shows his predicted majority has HALVED and warns that Corbyn and Sturgeon will seize power if he loses just 12 seats
- Sir John Peace suffers latest shareholder revolt at Experian
- With new Corps of Engineers flood study of Amite, Darlington Reservoir an interest, concern for some
- Exclusive: China's Dongfeng plans partial sale of PSA stake - sources
- Exclusive: Hyundai's $1.8 billion shipbuilding deal with Daewoo faces full EU probe - sources
- Exxon wins first climate change lawsuit against a major oil company as judge rules they did not mislead investors
- Aviva chief executive steps down after shareholder revolt – with £1.75m payoff
- Flooded farmers face growing dilemma in warming world
- Chevron expects $10 billion-$11 billion charge in fourth quarter; plans asset sales
- How Roger Ailes Built the Fox News Empire, and Changed TV News Forever
- Limo company operator is hit with 40 felony charges and could face up to 160 YEARS in prison following the horror crash that killed 20 people in upstate New York six months ago
News Corp-Fox merger plan faces opposition from major shareholder have 549 words, post on www.theedgemarkets.com at November 24, 2022. This is cached page on Business News. If you want remove this page, please contact us.