News Corp shareholders urged to end dual-class voting structure by more firms
Egan-Jones and Glass Lewis back recapitalization plan
Murdoch family owns 14% stake but controls 41% of votes
News Corp argues dual-class structure protects editorial integrity
Adds details on Irenic's vote in paragraph 4, plans in paragraph 13
By Svea Herbst-Bayliss
NEW YORK, Nov 5 (Reuters) -Two more U.S. proxy advisory firms on Tuesday urged News Corp NWSA.O investors to support a hedge fund's campaign to change the company's dual-class share structure, saying no investor should have voting rights that are different from others.
Egan-Jones and its bigger rival Glass Lewis recommended investors back a recapitalization plan at the company's Nov. 20 meeting where all stock would have one vote for one share. They join prominent proxy advisory firm Institutional Shareholder Services, which last week urged News Corp investors to do the same.
Voting for the nonbinding shareholder proposal, which was made by hedge fund Starboard Value, would be a signal that investors are intent on breaking Rupert Murdoch's control over the media empire that publishes the Wall Street Journal.
Hedge fund Irenic Capital Management, which has also been pushing News Corp for changes, on Tuesday said it will back Starboard and vote to eliminate the dual-class structure.
"The economic stake of each shareholder should match their voting power and ... no small group of shareholders, family or otherwise, should have voting rights different from those of other shareholders," Glass Lewis wrote in its report, which was seen by Reuters.
In its report, seen by Reuters, Egan-Jones wrote: "A one vote per share principle would provide an equitable approach to ensure that shareholders are given a fair voice that is proportionate to their stake in the Company and would be able to hold the management accountable of their actions through casting a vote."
The two recommendations, issued on Tuesday, come just days after the largest U.S. proxy advisory firm, Institutional Shareholder Services, threw its weight behind Starboard Value. Starboard, the activist investment firm run by Jeffrey Smith, submitted a nonbinding proposal to eliminate dual-class share structure, Reuters reported in September.
Murdoch and his family own a 14% economic stake in the company but control 41% of the votes.
News Corp has urged investors to vote against Starboard's proposal. The company has argued the dual-class capital structure provides key protections for editorial integrity.
Australian governance advisory firm Ownership Matters also recommended that investors vote for the Starboard proposal. Roughly 15% of the voting shares are held in Australia and Ownership Matters is a key proxy advisory firm in the country.
Glass Lewis noted that Starboard, and other hedge funds, have also criticized News Corp for its financial performance and wrote that if the dual-class structure were eliminated, the board could potentially face a proxy fight that would likely focus "squarely on the historical performance of News Corp."
The company could take actions to address investors' valuation concerns but keep its dual-class structure even in the face of governance best practices, the report said.
Irenic, which is run by Adam Katz and Andy Dodge, also said that its vote to end the two-class structure does not signal unhappiness with the News Corp management. Rather, Irenic said it believes "management is working earnestly to take concrete actions to unlock immediate value."
It also said it wants News Corp to pay a substantial premium to Class B shareholders, who currently have greater voting power, to convert to a structure where all shares have equal voting rights.
Reporting by Svea Herbst-Bayliss in New York
Editing by Marguerita Choy, Matthew Lewis and Lisa Shumaker
Aloqador aktivlar
Eng oxirgi yangiliklar
Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
