(Reuters) – Hedge fund Starboard Value confirmed on Monday it has filed a request with shareholders to scrap the dual shareholding structure that allows Rupert Murdoch to control News Corp (NASDAQ: ), publisher of The Wall Street Journal.
Starboard announced its move just days after Reuters exclusively reported that it had proposed scrapping the share structure, which gives Murdoch 40% of News Corp’s voting shares despite his holding of about 14%.
“This is clearly not the appropriate governance structure for a public company, and we believe it has exacerbated News Corp’s valuation discount to its intrinsic value,” the hedge fund said in a statement.
She says there is no reason to extend voting rights to Murdoch’s children, and that it has affected News Corp shares.
Starboard said it would provide more information in the coming weeks and warned News Corp.’s board not to listen to concerns about its structure.
“If the council refuses to listen, we can then take further action,” Starboard added.
News Corp could not immediately be reached for comment.
Starboard’s move comes as 93-year-old media mogul Murdoch is locked in a legal dispute with some of his sons to try to ensure his son Lachlan takes control of News Corp and broadcasting giant Fox Corp after his death.
News Corp said last month it was considering options for Foxtel, the Australian pay-TV provider, in response to third-party interest.
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