bloomberg
Edmund Lee

The publisher of News Corp.s Wall Street Journal Europe newspaper resigned because of what he called a possible perception of impropriety involving two articles that originated with a business partner.

Andrew Langhoff, 49, who ran the newspapers business since January 2009, said an arrangement between its circulation department and a company called Executive Learning Partnership could be viewed as undermining the news operations editorial independence, according to his e-mail to employees today, a copy of which was obtained by Bloomberg News.

“Because the agreement could leave the impression that news coverage can be influenced by commercial relationships, as publisher with executive oversight, I believe that my resignation is now the most honorable course,” he wrote.

The e-mails authenticity was confirmed by Kate Dobbin, a spokeswoman for New York-based News Corp. (NWSA)s Dow Jones & Co. unit, which publishes the Wall Street Journal Europe. Dow Jones ended its business arrangement with Executive Learning Partnership “because Dow Jones has zero tolerance for even the appearance of a breach of ethical standards,” Dobbin said.

The business deal that Langhoff cited was handled by another employee who is no longer with the company, according to his e-mail.

Clarifying Stories

The Wall Street Journal Europe printed a clarification at the top of the two articles, both of which mentioned Executive Learning Partnership, on its website. The explanations say the stories were written in connection with a deal between the circulation department and the partnership, or ELP, that was not disclosed to readers.

“The impetus for writing the article was the agreement, but the reporting and writing were solely the responsibility of the News Department with no input or review prior to publication by the Circulation Department or ELP,” the clarification reads.

Langhoff, who joined the Dow Jones in 2003 as general counsel for its Ottaway newspapers division, said he had already planned to leave his position at the end of the fiscal year and return to the U.S. from London.

Dow Jones parent company, New York-based News Corp., faces a U.K. parliamentary probe of phone hacking at one of its London newspapers. After closing the News of the World tabloid following the hacking scandal, News Corp. formed a Management and Standards Committee to investigate the companys three other British newspapers, it said in a filing today.

New Corp. Probes

Les Hinton, former executive chairman of News International and former chief executive officer of Dow Jones, will be questioned by the U.K. House of Commons Culture, Media and Sport Committee on Oct. 24 as part of its investigation into the scandal, the panel said today.

The company will begin a search for Langhoffs successor. Kelly Leach, senior vice president and head of strategy for Dow Jones, will manage EMEA operations in the meantime, the company said in a statement.

Bloomberg LP, the parent of Bloomberg News, competes with News Corp. units in providing financial news and information.

2011-10-12 13:39:00