British MP Tom Watson is followed by reporters as he crosses the street near Occupy Los Angeles protesters demonstrating at Fox Studios during the annual News Corp. stockholder meeting in Los Angeles, October 21, 2011. REUTERS/David McNewDAVID MCNEW/Reuters
News Corp. investors were preparing for a stormy annual meeting on Friday at which a U.K. politician was aiming to confront Rupert Murdoch with allegations that journalists at the News of the World commissioned investigators to target Kate Middleton, the Duchess of Cambridge.
Tom Watson, a Labour Party member of the culture, media and sport select committee who subjected Mr. Murdoch to intense questioning in a parliamentary hearing in July, was planning to tell investors that the News of the World phone hacking scandal has yet more damage to inflict on the company's reputation.
If selected to ask a question at the News Corp. AGM in Los Angeles, Mr. Watson was intending to ask Mr. Murdoch why he had not warned shareholders that there was a strong possibility of further claims being made against News International, the parent company of the Sunday tabloid at the heart of the phone hacking scandal.
His claims were to include an allegation that News of the World journalists commissioned at least three private investigators, beyond Glenn Mulcaire who was jailed for hacking phones in 2007.
Those investigators impersonated Gordon Brown, the former British prime minister, targeted private information belonging to Kate Middleton, who married Prince William this summer, and illegally obtained information from British Army intelligence officers, Mr. Watson was expected to claim.
He was preparing to tell the meeting that the reported £20-million ($32.2-million) set aside by News International to pay compensation to victims of illegal journalistic methods would be wholly inadequate.
He had gathered evidence from the Metropolitan police in London, he told the Financial Times, that indicated that the Serious Organized Crime Agency had seized hard drives and other evidence of computer-based interceptions, such as the use of viruses and Trojan malware, from at least three private investigators who had worked for the News of the World as well as other papers.
Mr. Watson has flown to Los Angeles for the News Corp. meeting and said he was intending to vote as a proxy for the AFL-CIO, the trade unions federation, against the re-election of Mr. Murdoch and his sons James and Lachlan, to the board.
Between them and close allies, the Murdoch family hold almost 50 per cent of voting shares, so there is no likelihood of success for the protest votes.
However, a number of organizations, including Calpers, the Californian public employees' pension fund investment body, and the New York City pension funds have already indicated they will vote in the same way as Mr. Watson.
Investor advisory groups such as Glass Lewis and ISS have also recommended votes against the Murdochs and selected other long-term directors, and a representative of the Church of England ethical investment advisory group attending the meeting told reporters he would vote against the Murdochs.
On Friday, CtW, another activist investor group, said they were writing to Sotheby's and GlaxoSmithKline, where James Murdoch is a director, calling on the boards of these companies "to part ways" with him over the phone hacking scandal.
So far, 16 people have been arrested, including David Cameron's former director of communications Andy Coulson, the News of the World has been shut down and the Metropolitan police commissioner has resigned in the fall-out from the scandal.
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