Rupert Murdoch took a calculated gamble by extending his poison pill
against John Malone and in the process is facing a growing and
unnecessary distraction, says John Durie in The Fin Review. His
actions left shareholders with no option but to challenge the move to
protect their own rights. The decision by the Australian Council of
Super Investors and a
group of international pension funds to launch legal action against
News Corp is
as much about the future as it is the past, says Stephen Bartholomeusz in The Smage. The litigation isn’t about the existence of the poison pill per
se, but rather that News has broken its promise that shareholders
would be able to vote on whether it should be extended.
Five months after announcing plans to split the company to
create better value for shareholders, the outgoing management of
Mayne Group has again fumbled on delivery, reports The SMH. After the company is broken up next month, shareholders in the
domestic healthcare business – to be known as Symbion Health – who
were expecting a steady income stream, have been told they face a
year without dividends.
The Fin Review reports that The Business Council of Australia
has asked for up to $100,000 from each of its 100 members to build a
campaign fund to rival the ACTU’s $8 million advertising blitz, as the
war of words over IR reform heats up.
And millions of dollars in capital raisings for
uranium floats in South Australia are under a cloud following the State
ALP’s unannounced decision to block new uranium mines in the State, reports The Australian. SA, which houses two of Australia’s three operating uranium mines, was expected to be the most liberal
state in its approach to uranium mining.
On Wall Street, US stocks closed sharply lower overnight, with
General Motors shares plummeting nearly 10% in the
wake of auto parts manufacturer Delphi Corp’s bankruptcy filing, and
both the Dow Jones and S&P 500 hit five-month lows. The Dow closed
down 53.55 points at 10,238 – MarketWatch has a full report here.