Inheritance Dispute Thought To Be Behind Lachlan Murdoch's News Corp Departure

by Glen Shapiro, LawAndTax-News.com, New York

02 August 2005

Following Lachlan Murdoch's unexpected departure from his role as deputy chief operating officer with his father's News Corp organisation, reports in the US media have suggested that a family feud over inheritance may have widened the rift between Lachlan and Rupert Murdoch.

In a statement released on Friday, Lachlan Murdoch revealed that he would be resigning effective from August 31, and would be returning to Australia with his wife and child. However, he will remain a director of the company.

According to a Wall Street Journal report on the shock resignation, business concerns expressed by Lachlan Murdoch regarding what he perceived as his father's attempts to undermine his efforts within the News Corp group were believed to be the main reason behind his departure.

However, a family dispute over whether shares in the media conglomerate should be afforded to Mr Murdoch's two children with his new wife, Wendi Deng has reportedly fanned the flames of discontent for his older offspring.

Under the terms of the divorce settlement agreed between Mr Murdoch and his second wife, Anna, control of the majority of the family's 30% voting stake in News Corp was to pass to their three children together - Elisabeth, Lachlan and James - and to a daughter from a previous marriage, Prudence.

The WSJ report revealed, however, that Mr Murdoch has since attempted to amend the arrangement in order to secure a stake for his two youngest children, Grace and Chloe.

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