Investors threaten board (Murdoch)

[CHIMO]

News Corp chairman Rupert Murdoch is facing a dramatic showdown with shareholders over plans to strengthen his control over the company.

Murdoch announced last week that a 'poison pill' arrangement designed to prevent rival Liberty Media from increasing its 18 per cent stake in the group will be extended by two years. Analysts described the move as a 'slap in the face for corporate governance'. Now America's most powerful corporate governance consultant, Institutional Shareholder Services, has come out strongly against the plan.

A spokesman for ISS, whose clients include America's most powerful investors, told The Observer: 'It is definitely not best practice. It's not a good thing for shareholders. Unless the pill is put to a vote, shareholders likely to withhold re-election of the incumbent directors'.

ISS has mobilised shareholders before, often with spectacular results. It helped to remove controversial Disney chief executive Michael Eisner, who left after a shareholder campaign. A News Corp spokesman said: 'We haven't had any complaints from shareholders. We'd be happy to talk to the ISS.'

http://observer.guardian.co.uk/business/story/0,6903,1548578,00.html

[philb]

1. More should buy stock in News Corp so they can take part in decision

But also who controls Liberty Media?

Sounds like situation might not be an improvement if they were in control.

IMO both the shareholders and readers should exercise more control over what they read and what they support, relating to ensuring fair and balanced news coverage and editorial policy.

[NEOBuckeye]

2. Well, if Murdoch's not happy about it, it must be a good thing

I think Liberty Media is conservative, so it wouldn't be that big of a change. But as the saying goes, the enemy of my enemy is my friend... At least as far as it makes Murdoch squirm.

What he fears most is losing majority control of News Corp. And Liberty Media or some other entity may be building towards that end. If they eventually obtain a majority stake in News Corp., they can force out Murdoch, and he loses his empire and everything he has worked for throughout his entire life.

It would be his comeuppance. That's for sure.

[mogster]

3. Liberty Media

From their pages:

"Liberty Media Corporation (NYSE: L, LMC.B) is a holding company owning interests in a broad range of electronic retailing, media, communications and entertainment businesses. Our businesses include some of the world's most recognized and respected brands and companies, including QVC, Encore, Starz, IAC/InterActiveCorp, and News Corporation."

http://www.libertymedia.com/

Board of Directors

John C. Malone
Robert R. Bennett
Donne F. Fisher
Paul A. Gould
David E. Rapley
M. LaVoy Robison
Larry E. Romrell

Malone yields at google:
Dr John C Malone

Director at
Bank of New York Company, Inc., The
New York, New York
FINANCIAL / MONEY CENTER BANKS
Director since 1986

63 years old

Chairman of Liberty Media Corporation from October, 1990 to present. Chairman, CEO and President of Liberty Media International, Inc. from June, 2004 to present. Chairman of Tele-Communications, Inc. from November, 1996 and Chief Executive Officer from January, 1994 to March, 1999. Director of The Bank of New York, CATO Institute, Liberty Media Corporation, Liberty Media International, Inc. and UnitedGlobalCom, Inc. Member of Shareholders Committee of Discovery Communications, Inc.

http://www.forbes.com/finance/mktguideapps/personinfo/FromPersonIdPersonTearsheet.jhtml?passedPersonId=226934

[Gloria]

4. PS--News Corp is making a bid for a huge share of Russia's

last non-gov. TV outlet......was in the WMW from 8/10....