Investing in Dow Jones: Deal or No Deal?
By Ian L. Cooper
Keep close watch on Dow Jones (DJ). The stock may have soared $20+ on Tuesday, but the run may be short lived. According to reports, the Bancroft family is expected to vote against the deal, which means the deal would not happen. What’s odd here is that the stock has not sold off on that. If there’s no deal, shares of Dow Jones could easily slip back to $42. I don’t know at this point.
Some believe the Street is waiting for the official word from the family. Others believe Murdoch’s bid goes higher. It’s a wait and see at this point.
One thing’s for certain. I don’t think we’d see a bid from the likes of the New York Times or Reuters given the hefty $5 billion offer for the Dow Jones. At those two camps, management would have to ask permission, unlike Murdoch who controls a significant chunk of voting shares at News Corporation. And the answer would be a screaming no.
Take care,
Ian L. Cooper, Editor, Early Alert Trader
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