News Corp shares closed up 5.5% in New York and rose 5.1% in Sydney.
The move recovers some of the losses sustained as the phone-hacking scandal at its newspaper title, the News of the World, has unfolded.
But pressure on the company has continued, with more shareholders questioning the company's standards.
The giant Californian public pension fund, Calpers, has joined the list of those who are unhappy with the way the company has been managed.
Another to publicly state its unhappiness with the way the company is run is CBIS (Christian Brothers Investment Services Global Funds).
Many News Corp. analysts seemed to share the opinion that the hearing was not as disastrous as expected and may have even helped the company. News Corp.'s stock rose on Tuesday by 83 cents, or 5.5 percent.
"We give [Rupert Murdoch] an A+ for contrition, which probably helps repair his reputation a bit," David Bank, analyst with RBC Capital Markets, wrote in a recap of the hearing.
Bank also wrote that James Murdoch was "really the star of the show, and his credibility was probably enhanced." Murdoch's youngest son said he was not working directly with News International when the hacking first began.
"He acknowledged that he was informed about key follow-up issues like civil settlements but was not a driving force behind them," Bank wrote.
James Murdoch, 38, is deputy chief operating officer of News Corp. and chairman and CEO of News International. He is in part blamed for mishandling the debacle that also led News Corp. to withdraw its takeover bid for pay-TV broadcaster BSkyB on July 13.
James has been criticized for responding too slowly to initial allegations that the tabloid was engaging in illegal phone-hacking. News International apologized in rival national newspapers over the weekend for its wrongdoings.
The Murdochs did not reveal any crucial information that could implicate them in additional phone hacking scandals, saying they were "unaware" of phone hacking with respect to victims of the 9/11 attacks. The FBI announced they began a preliminary inquiry on July 14 into the matter.
No comments:
Post a Comment