Dow Jones stock up on News Corp. meeting

NEW YORK (CNNMoney.com) -- Dow Jones shares closed sharply higher Friday after the Bancroft family, which has a controlling interest in the company, said it would meet with News Corp. to discuss its $5 billion buyout offer.

Shares of Dow Jones (up $7.89 to $61.20, Charts), the publisher of The Wall Street Journal, closed nearly 15 percent higher at $61.20 on the New York Stock Exchange Friday, above the $60-a-share from News Corp. that the Bancroft family initially rejected.

Michael Elefante, a company director who represents the family, told the Dow Jones board Thursday evening that Bancroft family representatives would meet with News Corp. (up $0.59 to $24.22, Charts, Fortune 500), including chairman Rupert Murdoch, to see if "it will be possible to ensure the level of commitment to editorial independence, integrity and journalistic freedom that is the hallmark of Dow Jones."

The family also said it is open to other options and that all aspects of the News Corp. proposal could be the subject of negotiation by Dow Jones' board of directors and the Bancrofts.

Dow Jones board members said there no assurance that a deal would take place as a result of the talks with News Corp or that they would support such a move.

Another shareholder, former Dow Jones executive Jim Ottaway Jr. who controls 5.2 percent of voting power, said Friday he was disappointed by the Bancrofts' decision to consider Murdoch's bid and urged the company to find a "more trustworthy" buyer.

On May 1 News Corp. offered $5 billion, or $60 a share, for Dow Jones. Shortly thereafter, News Corp.'s Murdoch offered the Bancrofts a seat on the company's board if they accept his bid.

The Dow Jones board initially did not act on the offer since it believed the Bancroft family, which owns 52 percent of the outstanding voting power, would vote against the deal.

Members of the Bancroft family have spoken out against the deal, contending that the buyout would endanger The Wall Street Journal's independence.