Australian pension fund pulls out of News Corp after failure to oust Murdoch
January 10, 2013 4:56 PM EST
An Australian pension fund said on Thursday that it would sell down its A$7 million (4.6 million pounds) stake in Rupert Murdoch's News Corp
Last October, Rupert Murdoch survived a second attempt to oust him as chairman of News Corp, defeating critics who said his family wielded too much control over the company.
First Super, an A$1.7 billion pension fund in Australia, said it had asked its fund managers to sell News Corp shares over the next few months, as the lack of a more independent board meant inadequacies of the governance structure and posed "unacceptable" risks for investors.
"These issues are apparently of no concern to Rupert Murdoch, so our Board decided to take his advice and sell down our shareholding," Michael O'Connor, the fund's co-chair, said in a statement.
News Corp shares have gained more than 40 percent in the past year, and the company announced a plan to split into two businesses, one for entertainment and one for publishing, a move to boost the value of its film and television assets.
"Certainly the timing has been good for us, but clearly we are a long-term investor as a superannuation fund and we take a long-term view," O'Connor told Reuters.
Australia has the world's fourth-largest fund management market, mainly because of the nation's A$1.3 trillion superannuation system, which ensures a steady flow of retirement savings into the market. ($1 = 0.9516 Australian dollars)
(Reporting By Maggie Lu Yueyang; Editing by Chris Gallagher)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- Galaxy Note 4 vs iPhone 6 Plus: Better Performing Display and Best Overall Screen
- Samsung Galaxy Note 4 vs Samsung Galaxy S5: Battle of the Samsung Flagship Smartphones
- Apple iPad Air 2, OS X Yosemite Release Date Set For October, While iPad Mini 3 With Retina Headed For 2015 Release
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Galaxy Note 4 vs iPhone 6: Performance, Sales, iOS 8 and Android 5.0 L