Saudi billionaire boosts News Corp. voting stake
NEW YORK (Hollywood Reporter) - Saudi Arabian billionaire investor Prince Alwaleed bin Talal said Tuesday he now holds a 5.5% voting stake in Rupert Murdoch's News Corp. and is ready to raise his stake, especially if it is necessary to shield Murdoch from any potential hostile takeover attempts by the likes of John Malone's Liberty Media.
Investment vehicles controlled by the prince's Kingdom Holding Co. have converted what was last reported to be a 3% non-voting stake in the entertainment conglomerate into the new voting holding.
In an interview on CNBC Tuesday, Alwaleed said he has communicated his strategy to Murdoch and was "mobilized and ready" to further boost his voting stake "if we feel that the strategy of Mr. Murdoch and his son and his family is being threatened by any outsider." He added: "Clearly, this is something we will not accept, because we are very happy as shareholders with what Mr. Murdoch is doing."
A News Corp. spokesman Tuesday declined to comment on the news, but company sources said the Saudi prince has long been regarded by Murdoch as an ally in his showdown with Malone.
Liberty officials couldn't be reached for comment.
In November, Malone shocked Murdoch and Wall Street observers by announcing he had converted non-voting shares in News Corp. to build a close-to 18% voting stake in the conglomerate. The Murdoch family held a 29.5% stake as of November.
News Corp. late last year put in place a "poison pill," an anti-takeover measure that effectively freezes in Liberty's stake in the company. Last month, News Corp. said it has extended the provision until Nov. 2007 after Malone had said talks about a potential buyback of Liberty's stake have gone nowhere, and a deal was unlikely to happen this year.
Reuters/Hollywood Reporter