Murdoch’s News Corp. Stock Plunges on Debt Concerns
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SYDNEY, Australia — 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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