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Subpoenas Issued to Dow Jones and News Corp. Possible Insider Options Trading.

Reported by Marie Therese - May 8, 2007 -

The New York State Attorney General's office has issued subpoenas to Dow Jones & Company and News Corporation, seeking to question them about possible options trading prior to Rupert Murdoch's highly overpriced offer to purchase Dow Jones from the Bancroft family. According to Yahoo.com, "News last Tuesday of the $60-per-share bid by Rupert Murdoch's company sent Dow Jones shares soaring. A spokesman for Dow Jones, which publishes The Wall Street Journal, said Monday that it has received a subpoena from the New York attorney general's office and a request for information from the Securities and Exchange Commission regarding options trades."

The article continued:

"Trading surged in Dow Jones call options, which give purchasers the right to buy shares of the corresponding stock at a specified price by a certain date — usually reflecting a bet by buyers that the stock will rise in value. The trading pattern suggests that some investors may have known about Murdoch's offer before it was publicly disclosed.

"More than 10,000 call options on Dow Jones stock were traded in late April, compared with some 7,000 during all of the January-March quarter."

The Bancroft family opposes the sale and several key shareholders have also indicated that they will not support the Murdoch bid.

It will be interesting to see how FOX News' Vice President for Business Neil Cavuto will handle this news during his show later today.

Stay tuned!