LAWFUEL – Legal fees paid to the lawyers involved in Rupert Murdoch’s successful bid for Dow Jones total at least $30 million, according to a Wall Street Journal report.
Under the eventual deal Dow Jones agreed to pay the family’s legal and banking bills. News Corp. agreed to assume these liabilities if it bought Dow Jones. The family’s fees, to be paid to firms including Merrill Lynch, Morgan Stanley and the law firms Hemenway & Barnes and Wachtell, Lipton, Rosen & Katz, which could total at least $30 million, according to people familiar with the situation. That figure doesn’t include fees incurred by the Dow Jones board, which had its own advisers.
The big swing shareholder to switch sides was a group of Bancroft family trusts overseen by a Denver law firm holding 9.1% of Dow Jones’s voting shares. The firm, Holme Roberts & Owen, had been holding out for a higher offer from News Corp. — a request repeatedly rejected by Mr. Murdoch. The Denver trusts pushed other Bancroft family trusts to hold out for more money, at least for the holders of B-class supervoting shares. These shares are mostly held by the Bancrofts. But when some of those Boston trusts consented to a News Corp. deal late Monday, the Denver trustees lost much of their bargaining power.