Dow Jones won't act on Murdoch bid

NEW YORK (CNNMoney.com) -- Dow Jones & Co's board of directors has decided not to act on the $5 billion takeover bid made by rival media firm News Corp., the company disclosed Wednesday evening.

The publisher of the Wall Street Journal said the Bancroft family, which holds a controlling stake in the company, would vote 52 percent of the outstanding voting power against the deal.

The company said it was informed of the family's intentions by Michael B. Elefante, a director who represents the Bancrofts.

"Approval of a merger under Delaware law requires approval of a majority of the outstanding voting power of the corporation," the company said in a statement. "Accordingly, the Dow Jones Board of Directors has determined to take no action with respect to the proposal," the statement said.

A News Corp. representative was not immediately available for comment.

News Corp. (Charts, Fortune 500), controlled by Rupert Murdoch, made an unsolicited $5 billion bid to buy Dow Jones (Charts) on Tuesday. The $60-a-share bid offered a 65 percent premium to the closing price on Monday.

Some members of the family indicated late Tuesday that they would oppose the deal, raising the possibility that other companies could bid for Dow Jones.

Several analysts have said that if the company decided to go it alone, it's likely the stock would tumble back to the mid-$30s, where it stood before News Corp. announced its bid.

Newspaper publishers, Dow Jones included, have struggled in recent years as more and more readers and advertisers have flocked to the Internet. That's led to declines in circulation and advertising revenue for many newspaper companies.

In addition to the Journal, Dow Jones publishes the widely watched Dow Jones industrial average and owns the weekly financial publication Barron's, the Web site MarketWatch.com and Dow Jones Newswire services.