News Corp resists hostile takeover bid by Liberty

The strategy would exclude the purchaser of the 15 per cent stake, providing a ‘‘poison pill’’ defence against anyone plotting to take control of News Corp from 73-year-old Murdoch and his heirs apparent sons, Lachlan and James.

‘‘It means it’s very much more expensive for Mr. Malone to maintain his position or extend his position,’’ said Michael O’Sullivan, President of the Australian Council of Superannuation Investors.

The existing holdings of Malone, would not trigger the rights plan but additional shareholdings would. ‘‘The logic is to stop anyone acquiring the company or if they’re going to acquire the company, they have to go and speak to the Murdoch interests. It locks the company up effectively,’’ an analyst said.

Shares in News Corp, which is in the process of relocating from Australia to the US state of Delaware, closed down 4.3 per cent at A$22.69.

Murdoch, whose family owns 29.5 per cent of News Corp voting stock, said last week he was not losing any sleep over Liberty’s move. However the “poison pill” may be a short term measure as Murdoch must obtain shareholder approval to extend the rights plan beyond a year.

Liberty’s move sparked talk that it could launch a bid or press Murdoch to buy some of Malone’s assets. Some analysts have speculated Malone and Murdoch could be planning to merge their media empires.

—Reuters