Rupert Murdoch wants Dow Jones (DJ)
05-1-07: An interesting M&A activity today. The Dow Jones (NYSE:DJ) received an unsolicited offer from News Corp. (NWS) for $5 billion, which would put the company at about $60 per share. DJ’s share shot up over 54 % on this news, finally closing at $56 per share. If the deal does go through, this would give News Corp. a major piece of publishing business. For those that are existing holders of DJ shares, this would be an excellent opportunity to sell. Given this is an unsolicited offer, the deal has a good chance of not going through. In our view, investors should take this gift from Mr. Murdoch and lock in some profit.
In listening to Mr. Murdoch’s interview on FOX news, the man appears determined to acquire Dow Jones. While the offer is indeed very generous, the family that holds the majority voting rights is reportedly to be against the merger. Our view is Mr. Murdoch might need to get even more generous in order for the owners of DJ to sell. Look at this offer as the starting point, this process could take weeks and months before it is over with.
Comments
Hi, I recently opened position on NYX, do you have any comment on the NYX, while the shor term does seem very cloudy, but I just can't see how this stock will not turn ou tto be a winner after the merge of the Euronext. Do you have any comments on this one~
Posted by: chris | May 2, 2007 12:33 PM
NYX is a good choice for long term investment. You are correct, the merger with Euronext will propel NYX's coverage. We would definitely be interested in buying NYX. Just waiting for when it goes "on sale". Good Luck.
Posted by: ibooyah | May 3, 2007 12:43 PM