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Fidelity Investments Rakes in 45% Profit on Sale of Dow Jones Shares

Reported by Marie Therese - June 12, 2007 -

The Houston Chronicle and other newspapers are reporting that Fidelity Investments has divested itself of virtually all of its Dow Jones stock. According to the Chronicle report "[i]n a regulatory filing Monday with the Securities and Exchange Commission, Fidelity said it beneficially owned 116,754 shares as of May 31, representing less than 1 percent of the New York-based company, through its parent FMR Corp. In a Feb. 14 filing, Fidelity said it owned 5.4 million common Dow Jones shares. That represented an 8.6 percent stake." In effect this means that, by selling most of its Dow Jones stock, Fidelity reaped a 45% return on its investment. On May 1st News Corporation CEO Rupert Murdoch announced his highly inflated tender of $60 per share for Dow Jones. This drove the stock price much higher. The Bancroft family has still not made a decision about whether or not they will accept the offer. Is this just smart stock trading or something else?