Third US proxy advisory firm urges end of News Corp's dual-class voting structure
Adds details on Egan-Jones rating firm, background, paragraphs 1-2 and 5-6
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
By Svea Herbst-Bayliss
NEW YORK, Nov 5 (Reuters) -Two 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 (ISS) 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.
"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, ISS, 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.
Reporting by Svea Herbst-Bayliss in New York
Editing by Marguerita Choy and Matthew Lewis
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
