News Corp accused of nepotism in Shine deal
NEWS Corp is being sued by a group of its shareholders over accusations the Murdoch family is treating the business “like a wholly owned family candy store”.
Several legal filings allege nepotism over its purchase of Elisabeth Murdoch’s Shine television company for £415m.
Amalgamated Bank, a trustee for several investment funds holding more than 1m News Corp shares and the Central Laborers Pension Fund are behind the action. Neither are in News Corp’s top 100 shareholders by voting rights.
A News Corp spokeswoman told City PM she doesn not believe the claims have “any merit”.
Elisabeth will take a seat on the News Corp board as part of the deal for her production firm, which is behind hits including Ashes to Ashes and Ugly Betty.
Elisabeth will make around £200m from the deal.