Monday, October 23, 2006

Rupert Murdochs clever positioning in John Fairfax Holdings

News Corporation has denied any plans to take over Australian newspaper publisher, John Fairfax Holdings. The media company acquired a 7.5 per cent stake in Fairfax on 19 October 2006.

I have to say I don't think the current laws would allow News Corporation to take over Fairfax. Rupert Murdoch insisted that the interest was a strategic holding. This could prove to be a great play by Rupert Murdoch.

He did not rule out increasing the stake but denied any plans to swap assets or take over the company. He said that he had no present plans to invest in other media assets in Australia.

From here News Corporation will benefit significantly buy any rival trying to capture Fairfax. This will happen eventually and News Corporation has given itself a seat at the table for any talks which might occur regarding any take over offers.

Rupert Murdoch is a very good manager that understands controling an asset rather than owning it.

Good Luck Investing.

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