NEW YORK: Media mogul Rupert Murdoch and his family-controlled News Corporation will learn on Friday if the company can continue its 'poison pill' defense, put in place two years ago to forestall the perceived predations of investor and Liberty Media chairman John Malone.
If NewsCorp shareholders overturn the controversial anti-takeover mechanism, Malone would be free to increase his current 19% voting share, threatening Clan Murdoch's 29.5% controlling stake.
A negative vote would put the pill's future in the hands of a Delaware court and would devalue Murdoch's bargaining chip with Malone. The two have been negotiating various ways in which NewsCorp might buy out Liberty's stake [WARC News: 15-Sept-06].
Data sourced from Wall Street Journal Online; additional content by WARC staff