Liberty Buys $500M in News Corp. ADRs - Multichannel

Liberty Buys $500M in News Corp. ADRs

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Liberty Media Corp. Wednesday exercised its right to buy $500 million worth of preferred shares in News Corp.

This past March, News Corp. gave Liberty the right to buy more of its preferred limited-voting ordinary American Depository Receipts at $21.50 each in a major fund-raising deal ahead of its $6.6 billion bid for control of DirecTV Inc. parent Hughes Electronics Corp.

By choosing to exercise its right Wednesday, Liberty picked up the ADRs at a significant discount to their $27.29 closing price in New York Tuesday.

Analysts estimated that the deal would lift Liberty’s current stake in News Corp. -- held in preferred scrip -- to about 23% from 18%. The family of News Corp. chairman Rupert Murdoch owns about 30% of the company.

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