Business Services Industry

Stock hit as News ponders TV deal.

Australasian Business Intelligence, June, 2002

May 31, 2002 (The Australian

ABIX via COMTEX) -- News Corporation shares slumped more than five per cent, to close at $A12.60 on 31 May 2001. Prompting the fall was a reweighting of the stock on the Morgan Stanley Capital International Index. Investors were also concerned about further losses in Italy, with News Corp announcing it was in talks with Vivendi Universal to buy its Italian pay television business Telepiu. News Corp had wanted to merge its loss-making Italian pay TV group Stream with Telepiu, but Vivendi pulled out of the deal earlier in May 2002.

Publication Date: 1 June 2002

NEWS CORPORATION LIMITED - ASX NCP: STREAM SPA: VIVENDI UNIVERSAL: TELEPIU: UBS WARBURG AUSTRALIA LIMITED: MORGAN STANLEY CAPITAL INTERNATIONAL

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