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Starboard proposes that News Corp eliminates dual-class shares
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Starboard proposes that News Corp eliminates dual-class shares
Sep 9, 2024 8:57 AM

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.

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