Cable boss ups News Corp stake

CABLE mogul John Malone has became the second-largest voting shareholder in News Corp after Rupert Murdoch by converting some of his non-voting shares into 9.15% of the company's voting stock.

The reasons for yesterday's complex $1.4bn (£770m) cash-and-stock deal are unclear but observers speculated that he may be manoeuvring to pressure Murdoch into giving his television programming companies more access to the News Corp TV network.

Murdoch recently became a major player in the US satellite TV business with his purchase of DirecTV.

Malone, head of Liberty Media, may be attempting to push Murdoch into giving more carriage to some of his channels, including QVC shopping and Starz TV.

Other commentators said he may simply have seen an opportunity to make a profit on News International's underpriced voting shares, or that Liberty Media is attempting to simplify its financial structure and has tried to convince Wall Street that it plans to abandon its historically passive investor role.

Liberty says it now owns 48m News Corp voting American depositary receipts. It also now owns 210.8m News Corp preferred limited shares, which do not have voting rights.

Liberty is now the holder of a total equity interest of 17% in News Corp.

Liberty's shares advanced 45 cents, or 3.8%, to $12.23 on the New York Stock Exchange while News Corp ADRs were ahead by 41 cents, or 1.09% at $38.