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News Corp. Shareholders Approve Reincorporation Plan

Oct 26, 2004  •  Post A Comment

News Corp. on Tuesday moved one step closer to being called a United States-based company when shareholders overwhelmingly voted to reincorporate the Australian-based company in the United States.

The reincorporation measure won more than 91 percent of the shareholder vote, far exceeding the required 75 percent majority needed for shareholder approval of the relocation from Adelaide, Australia, to Delaware.

To secure the support of several large institutional investors in Australia, News Corp. was forced to make adjustments to its constitution to strengthen corporate governance and give shareholders more of a voice in matters concerning the company.

With the shareholder vote behind the company, Wall Street’s attention will likely focus on News Corp.’s next move for its 81-percent-controlled Fox Entertainment Group. FEG had served as News Corp.’s tool to access the U.S. capital markets, and many analysts believe the unit will eventually be folded into News Corp.