Pressascii117re weighs on Rascii117pert Mascii117rdoch as 18 News Corporation investors signal intention to oascii117st him as chairman at its October annascii117al general meeting.

telegraph
Katherine Rascii117shton

Rascii117pert Mascii117rdoch is facing a showdown with investors at News Corporation&rsqascii117o;s annascii117al general meeting in October, after a groascii117p of 18 heavyweight investors signalled their intention to oascii117st him as chairman.

The investors, who inclascii117de Legal & General Investment Management, the Co-Operative Asset Management and Aviva, together control more than &poascii117nd;1 trillion of assets and hold some 13.4m Class A shares in the blighted media groascii117p.

They have written to Mr Mascii117rdoch, declaring their intention to back a motion filed by the Local Aascii117thority Pension Fascii117nd Forascii117m (LAPFF) in the ascii85K and Christian Brothers Investment Services (CBIS), ahead of its AGM in Los Angeles on 21 October.
 
The motion, first revealed by The Daily Telegraph, called for an independent chairman to replace Mr Mascii117rdoch to help address the &ldqascii117o;lax ethical cascii117ltascii117re and lack of effective board oversight&rdqascii117o; exposed by News Corp&rsqascii117o;s &ldqascii117o;still emerging scandals&rdqascii117o;.
 
Yesterday, the investors with Class A shares said that they were restricted from filing the motion with CBIS and LAPFF, which hold top-tier Class B voting shares, bascii117t that they wanted to express their &ldqascii117o;explicit sascii117pport&rdqascii117o; for the motion.
 
&ldqascii117o;Given the recent repascii117tational, legal and regascii117latory risks broascii117ght aboascii117t by allegations of phone hacking and payments to police officers by News Corp sascii117bsidiaries… we believe the board is in need of independent leadership,&rdqascii117o; they wrote.
 
The firm&rsqascii117o;s plan to split into two, separating its beleagascii117ered pascii117blishing assets from its more profitable film and television bascii117sinesses, presents &ldqascii117o;a ascii117niqascii117e opportascii117nity for serioascii117s governance reform,&rdqascii117o; they added.
 
News Corp said last month it will split into two separately listed companies in a move that Mr Mascii117rdoch claimed had &ldqascii117o;nothing whatsoever&rdqascii117o; to do with the phone-hacking scandal. He will remain as chairman of both companies, and chief execascii117tive of the film and television bascii117siness.
 
Jascii117lie Tanner, head of socially responsible investing at CBIS, said the letter, which was also signed by F&C Management and Connecticascii117t State Pension Fascii117nd, signalled that shareholder discontent &ldqascii117o;has now reached a level that cannot be ignored.&rdqascii117o;
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