Sept 9 (Reuters) - Hedge fund Starboard Value confirmed
on Monday it had filed a shareholder resolution to eliminate the
dual-class share structure that allows Rupert Murdoch to control
News Corp ( NWSA ), the publisher of the Wall Street Journal.
Starboard announced its move only days after Reuters
exclusively reported that it had filed the proposal to abolish
the stock structure, which gives Murdoch 40% of News Corp's ( NWSA )
voting stock despite owning an equity stake of about 14%.
"This is clearly not the appropriate governance structure
for a public company, and we believe it has exacerbated News
Corp's ( NWSA ) valuation discount relative to its inherent value," the
hedge fund said in a statement.
It says there is no reason to extend super-voting rights to
Murdoch's children and that it has hit News Corp's ( NWSA ) stock.
Starboard said it will detail more information in the weeks
ahead and warned the News Corp ( NWSA ) board to listen to concerns about
its structure.
"If the Board refuses to listen, we can then take further
action," Starboard added.
News Corp ( NWSA ) was not immediately available for comment.
Starboard's move comes as 93-year-old media tycoon Murdoch
is locked in a legal dispute with some of his children to try to
ensure that his son Lachlan will control News Corp ( NWSA ) and
broadcasting giant Fox Corp ( FOXA ) after his death.
News Corp ( NWSA ) said last month it was considering options for
Foxtel, its Australia-based subscription television provider, in
response to interest from a third party.