Australian Stocks Rest; News Corp Shareholders Demand Murdoch Removal

Marcus Jacob
18 Jul, 2011
New York City

Australian stocks closed nearly unchanged as energy and metals closed mixed. Sundance Resources received $1.4 billion takeover from China based Hanlong Mining. News Corp continued its slide for the second week as restive shareholder demand the removal of Rupert Murdoch from management.

[R]4:30 Sydney – Australian stocks closed nearly unchanged as energy and metals closed mixed. Sundance Resources received $1.4 billion takeover from China based Hanlong Mining. News Corp continued its slide for the second week as restive shareholder demand the removal of Rupert Murdoch from management.[/R]

Australian stocks in a quiet trading were nearly unchanged as metals and energy prices closed mixed on the first day of the week.

News Corp continued its slide for the second week as the company faces more political headwinds that may lead to the prospect of UK newspapers division sale.

News Corp is also facing a growing list of restive investors are increasingly looking to install professional management and replace Rupert Murdoch family control. The company is facing several multimillion dollars of fines and political backlash from the UK lawmakers for its systemic failures in journalistic ethics and UK police bribery.

The ASX 200 index decreased 1.50 or 0.03% to 4,472 and All Ordinaries index dropped 2.80 or 0.06% to 4,540.

The Australian dollar decreased 0.3% to US$1.061. Spot gold in Sydney trading increased $15.50 to US$1,596.70 an ounce.

In trading, turnover increased to 2.09 billion shares worth $3.8 billion and 509 shares closed higher, 572 declined and 369 were unchanged.

Stock Movers

News Corp decreased 61 cents to $14.16 and non-voting share declined 56 cents to $13.76 as the company face several inquiries in the UK and US and may be forced to sell its UK newspapers. There is a growing list of shareholders who are seeking the removal of Rupert Murdoch from the company management and install professional management.

BHP Billiton decreased 4 cents to $42.85 as investors await more details of US$12 billion acquisition of Petrohawk Energy.

The deal will catapult the largest mining company in one of the largest independent shale oil explorer in the world.

Rio Tinto fell 24 cents to $81.60 and Woodside Petroleum decreased 92 cents to $38.25.

Santos Ltd dropped 49 cents to $12.74 after the company offered to acquire Eastern Star Gas for $924 million.

Newcrest Mining increased 14 cents to $40.41 and Kingsgate Consolidated soared 38 cents to $8.98.

Sundance Resources soared as much as 28% before settling at 20% higher to 48 cents after the company received $1.4 billion or 50 cents a share takeover offer from China based Hanlong Mining.

Hanlong controls 18.6% stake in the company.