Starboard proposes scrapping News Corp’s two-class share structure By Reuters

(Reuters) – Starboard Value has filed a shareholder resolution to eliminate the dual share structure that allows Rupert Murdoch to control News Corp (NASDAQ: ), publisher of the Wall Street Journal, the hedge fund said on Monday.

Reuters exclusively reported last week that Starboard had filed a shareholder resolution to scrap the share structure, which gives Murdoch 40 percent of News Corp’s voting shares despite holding a roughly 14 percent stake.

“We believe dual-class share structures are not in the best interests of shareholders and do not reflect best corporate governance practices,” Starboard said in a letter to News Corp shareholders at its annual meeting.

Starboard’s move comes as the 93-year-old media mogul is locked in a legal dispute with some of his children to try to ensure his son Lachlan Murdoch will control News Corp and broadcasting giant Fox Corp after his death saddle.

Last month, News Corp said it was considering options for Foxtel, its Australian pay-TV provider, in response to interest from a third party.