DJ board endorses News Corp. bid

NEW YORK (CNN) -- The board of directors for Wall Street Journal publisher Dow Jones and Company has agreed to recommend to stockholders a $5 billion takeover bid by rival media firm News Corporation.

However, the deal's fate ultimately rests with the Bancroft family, which holds a controlling stake in the company.

Dow Jones director and Bancroft Family representative Michael Elefante said Tuesday the company's longtime controlling shareholders are evaluating the draft merger agreement, but that "there can be, of course, no assurance" they will be prepared to move ahead with a deal.

The board said it is prepared to approve the $60-per-share bid by media mogul Rupert Murdoch's News Corp., if the deal wins approval.

"If a satisfactory level is obtained promptly, the board of directors of Dow Jones will, and News Corporation has stated that its board of directors will, meet to review the definitive merger documents," the statement said.

In the past Bancroft family members have spoken out against the deal, contending that the buyout would endanger the Wall Street Journal's independence.

Outside investors like T. Rowe Price, which owns about a 15 percent stake in Dow Jones, have said that the bid is attractive and should be considered.

News Corp.'s offer to buy the company was made public in May. Shortly thereafter, Murdoch offered the Bancrofts a seat on the company's board if they accepted his bid.

The Dow Jones board initially did not act on the offer since it believed the Bancroft family, which owns 52 percent of the outstanding voting power, would vote against the deal. It's been widely reported that family members are split on the offer.

Murdoch's global media conglomerate, News Corp., owns Fox broadcast network, online social networking site MySpace, and multiple newspapers published globally. E-mail to a friend

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