Rupert Murdoch is being sued by News Corp. shareholders over his proposed acquisition of the Shine Group, a television production company owned by his daughter, Elisabeth Murdoch, for $675 million.

 

The lead plaintiff in the lawsuit, Amalgamated Bank, has accused Murdoch of nepotism and overpaying for the company. Amalgamated is the only U.S. bank wholly owned by a labor union. According to the bank, which owns one million shares of News Corp. stock, the only reason to purchase the Shine Group is to “reward Murdoch’s family member and to perpetuate his family’s involvement in the senior management of News Corp.”

 

If the sale goes through, Elisabeth Murdoch, who owns 53% of Shine, will receive $320 million and a seat on News Corp’s board. The other major shareholders are Sony Pictures Televisio (20%) and BSkyB (13%), both of which will give up their shares in the company.

-Noel Brinkerhoff

 

Bank Says Rupert Murdoch 'Is Causing News Corp. to Pay $675 Million for Nepotism' (by Jamie Ross, Courthouse News Service)

The Amalgamated Bank v. Rupert Murdoch (Court of Chancery, Delaware) (pdf)

News Corp. to Buy Shine Group for $663 Million (by Mimi Turner, Hollywood Reporter)