News Corp shareholders unhappy with Shine purchase

News Corp shareholders are suing Rupert Murdoch in a US court for purchasing Elisabeth Murdoch’s Shine Group in a deal they say amounts to nepotism.

News Corp last month agreed a US$675m deal to purchase the production company owned by Rupert Murdoch’s daughter. She will receive US$320m in return for her 53% stake in Shine, remain as the company’s chairman and chief executive as well as joining the News Corp board.

The Amalgamated Bank of New York says the deal could put at risk other purchases being targeted by News Corp including the buy-out of BSkyB in the UK.

“Once the prodigal daughter is back into the News Corp fold, she will vie with her brothers, board members James Murdoch and Lachlan Murdoch, for the position of successor to Rupert Murdoch’s global media dynasty,” Amalgamated said in the complaint.

But sources close to the Shine deal say that a fair price has been agreed, and that more than one potential suitor for the company was considered.

A News Corp statement said the charges were without merit.

Source:  C21