Investors may just buy out Bancrofts who want to sell

Richard Perez-Pena of The New York Times writes for Wednesday’s newspaper that the two investors, Brad Greenspan and Ron Burkle, who meet with members of Dow Jones & Co.’s board on Tuesday may just offer to purchase the shares of the Bancroft family members who want to sell out.

Perez-Pena wrote, “The two men are not interested in buying the company outright, like Mr. Murdoch is, according to Steven Yount, president of the Independent Association of Publishers’ Employees, the main union for Dow Jones employees, which has tried to recruit Mr. Burkle and his private equity firm, the Yucaipa Companies, into making an offer.

“‘There are a lot of investors who aren’t willing to go for the whole megilla who could go in for a slice,’ Mr. Yount said.

“Mr. Burkle and Mr. Greenspan met with a special committee of the Dow Jones board that has been handling negotiations with the News Corporation, including representatives of the Bancroft family and nonfamily directors.

“Mr. Yount and others familiar with the talks said that one idea the investors put forward was to buy out only those members of the Bancroft family who wanted to sell — an arrangement that could still leave the family, which holds supervoting shares, with most of the shareholder vote. Another idea is an employee stock ownership plan — a structure that the Tribune Company is using to take itself private.”

Read more here.