Pearson Eyes Dow Jones Bid

A deal combining the Financial Times and the Journal would make sense for Pearson and Dow Jones from a competitive standpoint, and it likely wouldn't face as much shareholder opposition as a Murdoch deal.

The controlling shareholders of Dow Jones, the Bancroft family, have expressed reservations about selling the company to Murdoch because of concerns about his editorial practices. They may make some financial concessions in return for a more palatable buyer.

Currently, the Bancroft family is negotiating with News Corp. to set up safeguards to protect the editorial standards and independence of Dow Jones in the event of a deal.

"Reflecting the continuing and extensive dialogue between and among the Bancroft family members and their advisors, the draft proposal as it currently stands continues to evolve from the draft proposal as it stood earlier this week," said a spokesman for the Bancrofts. "No proposal will be sent to News Corp., however, until it has achieved consensus among the family members and their advisors.

"Whatever the details of the proposal as finalized and sent to News Corp., its purpose will be the same, namely, to preserve and protect the editorial independence and integrity of the Journal and its sister Dow Jones publications while respecting the legitimate business interests of the owner," he said.

The Bancrofts have expressed a willingness to entertain offers from other buyers, but no serious rival bids have emerged.

Supermarket magnate Ron Burkle has agreed to explore possibilities for a bid with the Independent Association of Publishers' Employees, a Dow Jones employee union that has been staunchly opposed to a deal with News Corp. Also, longtime public relations honcho Brian Tierney, owner of the Philadelphia Inquirer, said recently that he wanted to join the fray.

Both groups have been greeted with skepticism on Wall Street.

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