A special committee of Fox Entertainment has recommended that minority Fox stockholders not tender their shares to News Corp. until the special committee has studied the matter further.
On Jan. 10, News Corp. offered to exchange 1.9 class A shares of News Corp. for each class A share of Fox Entertainment in an effort to buy up the shares it doesn’t already own and subsequently merge Fox into News Corp. At the time, the offer represented a 7.4% premium to the Jan. 7 stock price of Fox compared with News Corp. Fox shares have since risen, so that the offer is actually a 0.66% discount to the Tuesday market closing price.
News Corp. owns 59.1% of Fox class A publicly traded shares.
The special committee, consisting of the two independent Fox directors, was appointed by the Fox board to evaluate the tender offer and make a recommendation to the minority stockholders. In a Securities and Exchange Commission filing Monday, the special committee said it had not yet been able to adequately evaluate the offer.
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The deadline for tendering shares is Feb. 7 but can be extended by News Corp.