Bitter pill for Murdoch

WILMINGTON - News Corp investors can proceed with a lawsuit against chairman Rupert Murdoch saying he reneged on an agreement to put a "poison pill" takeover defence to a shareholder vote, a judge ruled yesterday.

Delaware Chancery Court Chief Judge William B. Chandler III found Murdoch and company directors agreed not to make any changes to the poison pill without shareholders' support when they switched News Corp's place of incorporation to Delaware from Australia.

- BLOOMBERG