Murdoch’s News Corp moves to the US

its earnings. The vote followed months of wrangling over the deal, which will see Australia’s biggest company leave the benchmark stock exchange index.

‘‘Very good reaction from shareholders on the move there and also Rupert reiterating growth forecasts. That’s all very positive for the stock,’’ said Bruce Budd, a dealer with Perpetual Investments.

Murdoch had argued that shifting News Corp’s primary sharelisting to the New York Stock Exchange would attract more investors and boost access to US capital markets.

Built by Murdoch from a single newspaper in the Australian city of Adelaide, News Corp. now ranks as one of the world’s biggest media empires and owns the Fox network, 20th Century Fox film studios and a host of newspaper and satellite assets.

Murdoch was forced to bow to investor opposition to get the move over the line, striking a deal to enhance minority shareholder rights.

‘‘News Corporation will always be defined by an Australian spirit as it is from Australia, this company derives its entrepreneurial spirit, our energy, our brashness,’’ Murdoch said.

News Corp. defended itself against questioning by small shareholders about the move’s financial merits, saying its share price would gain once US investors started increasing their holdings. ‘‘There’s a considerable amount of headroom still between what the major institutions have in the index funds versus what their potential is when News Corp. is included in the S&P 500,’’ News Corp. director Geoffrey Bible said.

News Corp. maintained its forecasts for operating income growth in the mid-to-high teen range in 2004/05, with its Sky Italia pay TV business expected to reach profitability in the first half of 2005 and strong earnings improvement forecast for its pan-Asian Star network.

‘‘With our first quarter already behind us, those estimates remain achievable,’’ Murdoch said. His media empire is due to report quarterly earnings on November 4.

Shares in News Corp. rose 4.1 per cent in afternoon trade to A$10.87, while its preferred stock rose 5.8 per cent to A$10.65, following a 3 per cent rise in its ADRs overnight.

The gains followed recent falls as fund managers sold in anticipation of the stock exiting the Australian stock exchange, and the FTSE and MSCI Asian indices.

‘‘Australian fund managers can think about restructuring their portfolios and will be waiting on Standard & Poor’s to let us know what they’re going to do,’’ said Scott Maddock, analyst at fund manager BT Financial Group, which voted for the deal. ‘‘As far as investors in the stock are concerned, the company is the same.’’

Investors have sent shares in the media group down about 17 per cent since late June when S&P First confirmed the stock could not feature in both the main Australian and US indices, pouring some of the A$15 billion they once held in News Corp. into other heavyweight stocks in the local index, such as major banks, resources and telecoms. — Reuters