Sunday, November 26, 2006

Goebbels caught short

The tension between Murdoch and his oldest children over the terms of a trust holding the family's 28.5 percent stake in News Corporation, estimated in 2005 to be worth about $6.1 billion has now reached boiling point.

Under the trust, his children by Wendi Deng share in the proceeds of the stock but have no voting privileges or control of the stock. Voting rights in the stock are divided 50/50 between Murdoch on the one side and his children of his first two marriages.

Goebbels has now changed the trust and moved the shares to allow his (Murdoch's voting privileges) to pass to his children by Wendi.

It was always Murdoch's stated desire to have his children by Wendi Deng given a measure of control over the stock proportional to their financial interest in it but he has now gone the whole hog.

This may be illegal under trust laws but Goebbels has the politicians in the bag and has managed to subvert that particular law too.

All’s well that ends well.

Until Anna, Sarah and the gang get wind of this and head for the courts.


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