Rupert Murdoch's media company News Corporation has been given the green flag by its board of directors to proceed with reorganization plans, first proposed in April this year.
Not only will this encompass a move of the group's registered headquarters from Adelaide to Delaware in the US, where 75% of News Corp's earnings are generated, the company is also likely to acquire a 58% holding in the Queensland Press publishing business for A$2.45 billion ($1.75bn; €1.4bn; £955m).
Before packing its suitcases however, NewsCorp must receive the blessing of Australian shareholders for the move, triggered by the recent credit ratings agency ruling barring it from listing on both the New York and Sydney stock exchanges [WAMN: 25-Jun-04].
The reincorporation would entitle existing shareholders to stock at a one-for-two ratio in NewsCorp US, which has a primary New York listing and secondary listings on the London and Australian stock exchanges.
The proposed reorganization plans will now be presented to the Australian Securities and Investments Commission and the Australian Federal Court. If approved, the proposed transactions are expected to be completed by the end of this year.
Data sourced from: The Washington Post Online; additional content by WARC staff