News Ltd share issue worries fund managers

Fund managers looking to maintain their weighting in News Ltd need to take account of the 486 million shares to be issued to Liberty Media next month. They may also be required to take on preferred stock as News Ltd looks to buy out the equity it does not own in Fox Family Worldwide.

These deals will increase issued stock by about 20% and effect the weighting given to News Ltd in the S&P / ASX Indices. It’s widely expected that the S&P / ASX index committee will exclude the new issue of shares to Liberty Media from the index for at least three months, allowing fund managers ample opportunity to adjust their weighting to News Ltd.

‘Funds share problem with News Corp’, The Australian, 20/11/2000 p.35.