A Fox in Dow Jones' Henhouse

Updated from 2:52 p.m. EDT

The Bancroft family's opposition to Rupert Murdoch's attempted acquisition of Dow Jones (DJ) sets the stage for an epic battle between Wall Street and the venerable publisher that has chronicled its ups and downs for more than a century.

Murdoch's global media empire, News Corp. (NWS) made an unsolicited bid for the publisher of The Wall Street Journal for $60 a share, Dow Jones confirmed Tuesday. The $5 billion offer amounts to a whopping premium of 65% over Dow Jones' closing price on Monday, and it's destined to win favor from shareholders on Wall Street who stand to reap a huge and unexpected profit.

But the controlling shareholders of Dow Jones, the Bancroft family, have said that family members holding a slight majority of the company's voting power plan to block the deal. According to CNBC, which broke the news of the Murdoch proposal, the Dow Jones board is meeting Wednesday to discuss the bid.

The Bancrofts offered no explanation for the opposition, but some members of the family are reportedly opposed to selling their legacy to Murdoch, who has a reputation in the media industry for selling tabloid sensationalism as opposed to the deeply reported and measured journalism that has given the Journal its vaunted reputation.

With their stance, the Bancrofts are sure to raise hackles on Wall Street, since turning down Murdoch's offer risks squandering Tuesday's gains in the company's shares, which closed up $19.87, or 54.7%, to $56.20.

Recently, shares were down 40 cents, or 0.7%, to $55.80, signaling that while Wall Street's initial optimism about the deal is being tempered by the Bancroft's opposition, investors still believe that the family will ultimately cave and sell the company.