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Thursday, 3 May 2012 - News Corp board supports Murdoch after UK report |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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See the best of Reuters photography.  See more | Photo caption  Top pictures: April Our best photographs from the month of April.  Slideshow  Occupy resurgent Occupy Wall Street protesters stage anti-corporate protests in a May Day effort to revive the movement.  Slideshow  News Corp board supports Murdoch after UK report Tweet Share this Email Print Related News British press ethics inquiry could be curtailed 4:16pm EDT Analysis & Opinion Let News Corp keep BSkyB Rupert Murdoch’s escape act Related Topics World » Rupert Murdoch » News Corporation Chief Executive and Chairman Rupert Murdoch leaves after giving evidence at the Leveson Inquiry at the High Court in London in a April 26, 2012 file photo. Credit: Reuters/Olivia Harris/files By Yinka Adegoke Wed May 2, 2012 4:55pm EDT (Reuters) - News Corp's board of directors came out in full support of Chief Executive Rupert Murdoch on Wednesday, some 36 hours after a British parliamentary committee had described him as unfit to run a major international business. "The Board based its vote of confidence on Rupert Murdoch's vision and leadership in building News Corporation, his ongoing performance as Chairman and CEO, and his demonstrated resolve to address the mistakes of the Company identified in the Select Committee's report," the company said in a statement following a board meeting. News Corp was left reeling from a damning criticism of its handling of the phone hacking scandal at its now-defunct UK tabloid News of the World by the UK's Parliamentary Select Committee of Culture, Media and Sport Select Committee on Tuesday. The report lay much of the blame at the feet of its top executives, in particular Rupert Murdoch and his son James who runs the European operations. The fact that it has taken nearly 36 hours since the publication of the Select Committee's report to back Murdoch had already raised speculation the board was undecided on how to approach the sensitive matter. But one long-time News Corp watcher on Wall Street said the board, which has been under pressure since the scandal broke last year to show its independence from Murdoch, would have been reluctant to be seen giving a knee-jerk reaction to the critical 85-page report. Bob Monks, founder of corporate governance ratings firm Governance Metrics International, said News Corp's board should probably have taken even longer to examine the facts around the latest stage of the hacking scandal to ensure they act in the best interest of smaller shareholders. Governance Metrics rates News Corp with a grade 'F' in corporate governance. The phone-hacking scandal, which instigated the inquiry, has already led to the arrest of tens of News Corp staff in Britain and resulted in it having to pull out of its largest ever merger transaction with British satellite operator BSkyB last year. In a memo sent to News Corp staff on Tuesday, Murdoch said the company regretted its handling of the affair but the company's internal investigation had found no evidence of further illegal conduct at its other British papers other than a single incident reported some months ago. New York-based News Corp's biggest concern will be to contain the scandal and its impact in Britain but there is an increasing possibility it could spill over to the United States. On Wednesday, U.S. Sen. Jay Rockefeller sent a letter to Lord Justice Leveson, who is leading a judicial investigation into media ethics in Britain, to ask if the inquiry has uncovered any new information that the misconduct of News Corp's UK papers involved U.S. citizens or violated U.S. laws. Rockefeller is chairman of the U.S. Senate Committee on Commerce, Science and Transportation, with jurisdiction over media and communications. Murdoch and his son James appeared before the Leveson hearing last week. News Corp shares closed up 10 cents to $19.89 on Nasdaq. (Reporting By Yinka Adegoke; Editing by Richard Chang) World Rupert Murdoch Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (5) JohnSmith9875 wrote:   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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