Murdoch’s News Corp. Stock Plunges on Debt Concerns
Fears about the ability of Rupert Murdoch’s News Corp. to pay its debts and an apparent delay in securing refinancing pushed the media giant’s stock sharply lower Monday.
The Sydney-based company, with an international empire ranging from 20th Century Fox Film Corp., Fox Broadcasting Co. and TV Guide magazine in the United States to one-third of Britain’s newspapers, has yet to reach agreement with all of its 150 lender banks on the refinancing package, including a new $600-million credit.
The stock sank 56 cents (73 cents, Australian), or almost 15%, to a low of $3.27 ($4.25) after the company disclosed it might be insolvent by June if it does not secure an $8-billion refinancing package. At the close of trading, the stock was at $3.31 ($4.30).
In New York Stock Exchange, News Corp.’s U.S. shares closed at $6.875, off 50 cents.
News Corp. executives were unavailable for comment.
News Corp. shares are now hovering just above the five-year low of $3.23 ($4.20) hit in December, sharply down from the 1990 peak of $9.54 ($12.40).
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