Dow Jones shares surged yesterday as investors bet that Rupert Murdoch's News Corp would raise its $5 billion (€3.7 billion) offer for the publisher of the Wall Street Journal, or that rival bidders would enter the fray.
In midday trading on Wall Street, Dow Jones shares had gained 7.64 per cent to $60.95 - above the $60 a share put on the table by News Corp.
Meanwhile, bankers were talking about a slew of companies with diverse interests, including Bloomberg, General Electric, Yahoo, Hearst, Pearson - which owns the Financial Times - and others that might also bid for one of the most influential US media companies.
However, several of those groups have denied interest in the past.
There were also doubts that anyone would be willing to match the 65 per cent premium offered by Mr Murdoch.
The frenzy was touched off after the Bancroft family, which controls 64 per cent of Dow Jones's voting power, dropped its resistance to a deal with Mr Murdoch and agreed on Thursday night to meet him to discuss his offer for the company.
The family also made clear it was open to other offers. The Bancrofts are hoping to persuade Mr Murdoch to increase his bid, according to a person familiar with the matter.
They also want to learn more about his suggestions on ensuring the editorial integrity of the Journal, which they have guarded for more than a century.
Mr Murdoch has already offered to create an independent editorial board for the Journal similar to one established at the Times of London and to give the family a seat on the News Corp board.
The family's decision has thrust Dow Jones's board into the spotlight.
The directors, who had first opted not to take action on the News Corp offer owing to the family's resistance, are now expected to take a leading role in arranging a sale or other strategic alternative.
The Bancrofts had rejected Mr Murdoch's offer a month ago,with some family members voicing concerns that his hands-on style and right-leaning political views would tarnish the Journal's editorial integrity.
However they have reversed their stance after weeks of internal debate. They were apparently swayed by concerns about Dow Jones's ability to survive as a stand-alone company.
