A New York bank's lawsuit challenging News Corp.'s planned $675-million purchase of Rupert Murdoch's daughter's television company raises a litany of criticisms that have long simmered below the surface of the $33-billion media giant.
"Murdoch historically has operated News Corp. as his own private fiefdom with little or no effective oversight from the board," the 46-page complaint filed Wednesday in Delaware Chancery Court by Amalgamated Bank alleges. The bank, through its funds, owns nearly 1 million shares of News Corp. common stock. It manages $12 billion for institutional firms and public employee pension funds.
Amalgamated's challenge was sparked by Murdoch's decision last month to purchase his daughter Elisabeth Murdoch's London-based television production company Shine Group at an allegedly inflated value with the primary reason of bringing her back into the News Corp. fold.
"This is going to be a very interesting case. It will be a wonderful case for professors to teach to their corporate law classes," UCLA law professor Lynn A. Stout said. "What the plaintiffs are alleging is that Rupert Murdoch is using his firm to funnel money to his daughter."
News Corp., Rupert Murdoch: Amalgamated Bank sues News Corp. over purchase of Shine Group - latimes.com
"Murdoch historically has operated News Corp. as his own private fiefdom with little or no effective oversight from the board," the 46-page complaint filed Wednesday in Delaware Chancery Court by Amalgamated Bank alleges. The bank, through its funds, owns nearly 1 million shares of News Corp. common stock. It manages $12 billion for institutional firms and public employee pension funds.
Amalgamated's challenge was sparked by Murdoch's decision last month to purchase his daughter Elisabeth Murdoch's London-based television production company Shine Group at an allegedly inflated value with the primary reason of bringing her back into the News Corp. fold.
"This is going to be a very interesting case. It will be a wonderful case for professors to teach to their corporate law classes," UCLA law professor Lynn A. Stout said. "What the plaintiffs are alleging is that Rupert Murdoch is using his firm to funnel money to his daughter."
News Corp., Rupert Murdoch: Amalgamated Bank sues News Corp. over purchase of Shine Group - latimes.com