Rupert Murdoch's Battle Against Kevin Rudd Heats Up

Rupert Murdoch's Bitter Political Fight
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* Murdoch wages newspaper campaign to oust PM Rudd's Labor Party

* Murdoch using old media to fight for interests in new media space

* Rudd hires Obama social media campaign heavyweights

By Rob Taylor

SYDNEY, Aug 12 (Reuters) - Australia's Prime Minister Kevin Rudd is battling not only jaded voters in a bitter election race, but the rancour of Rupert Murdoch, whose newspapers have depicted Rudd as everything from a Nazi colonel to a thief stealing the nation's savings.

The Australian-born Murdoch's crusade to oust Rudd in the Sept. 7 general election has given rise to a heated social media campaign inside a campaign, as Twitter, Facebook and other digital platforms become the weapons used by some to try to outflank Murdoch's "old media".

As the campaign kicked off last week, Murdoch's best-selling Daily Telegraph tabloid urged readers to "Kick This Mob Out" over a picture of Rudd at Parliament House.

In another front page from Murdoch's News Corp stable, Rudd and top lieutenants were shown as the hapless Nazi guards from the 1960s "Hogan's Heroes" television show, while another greeted a high-profile recruit to Rudd and Labor's centre-left cause with the headline "Send in the Clown".

In the finely poised western Sydney seat of Parramatta, Julie Owens a member of parliament for Rudd's Labor party, says the influence of the Murdoch press is hurting, with the billionaire's papers having adopted an even more confrontational stance than in past years.

"People aren't as aware of what we have done, and they can't judge us as a government," says Owens. "They can only judge us as a reality TV show - who is evil, who is bad, who is hard done by - and that's what the news has become."

Exactly what Murdoch's motivations are have been much debated.

Many people think Murdoch is using his 70 percent grip on big-city newspaper sales to protect the dominance of his prized cable TV investments from emerging digital media threats, chiefly a publicly funded $34 billion super broadband network championed by Rudd.

Murdoch lent credence to that theory, taking to Twitter to criticise "Oz politics!" and question how the cross-continent broadband - which the conservative opposition wants to scale back in cost and scope - could be paid for in Australia's AAA-rated but slowing economy.

"News Corp hates the government's National Broadband Network (NBN). The company has formed a view that it poses a threat to the business model of by far its most important asset in Australia, the Foxtel cable TV monopoly," wrote columnist Paul Sheehan for the rival Fairfax newspaper group.

Telecommunications analysts don't doubt Labor's NBN, rolling fibre cable into almost every home, threatens Murdoch's most important Australian asset, Foxtel, jointly owned with phone giant Telstra and near unchallenged in pay TV.

"Broadband, in general, undermines the business model that Foxtel and others have, where you have to buy a package of programmes that you don't want, and 90 percent of which is rubbish," said telecommunications analyst Paul Budde.

But the 82-year-old, who has earned the nickname the "Sun king", also appears to be favouring conservative politics as he has done in Britain and the United States, while reinvigorating an Australian political war that dates back as far as 1975 and the dismissal of then Labor prime minister Gough Whitlam.

Back then, Murdoch oversaw coverage that was seemingly so one-sided in favour of opposition conservatives, and controversial, that his own journalists went on strike.

Rudd has also fought battles with Murdoch's papers over ultimately false accusations of political favours supposedly done in 2009 for a car dealer friend, and again over ill-fated attempts to tighten Australian media regulation following phone hacking scandals in Britain.

THE SOCIAL NETWORK

Rudd has responded to the Murdoch push against him with a heavy reliance on social media, including announcing the start of the election campaign over Twitter, where he regularly messages and posts photos.

Labor has recruited three digital media heavyweights from U.S. President Barack Obama's 2012 campaign team, including British spoof video expert Matthew McGregor and Tom McMahon, dubbed Obama's "digital attack dog".

McGregor has helped create slick "What we do now" videos, calling for volunteers and telling digital savvy voters that "right now, it's 50/50" and "stopping Tony Abbott starts now".

Abbott is the opposition leader hoping to replace Rudd as prime minister.

Although all parties are using social media extensively, Ed Husic, Rudd's broadband minister, says the new platforms were helping counter the impact of the Murdoch media.

"Social media has been transformational, it's enormously positive. It's allowed MPs to talk about issues of importance to them and their communities that it has been difficult to do so previously," Husic said while campaigning in his western Sydney electorate.

Which approach works best may be decided on Sept. 7, but a week into the campaign, support for Labor is slipping, especially in Sydney's crucial western outer fringes, where the slowing economy, jobs and immigration are flashpoint issues.

The conservative opposition led by Abbott has picked up two points since the campaign began in earnest, according to the latest opinion poll from Neilsen in Fairfax newspapers, mirroring other major surveys.

However, there is also a sense that neither the political parties, nor those like Murdoch agitating on the sidelines, are getting through to many voters, by new media or old, with some analysts tipping a record protest vote despite Australia's compulsory voting system.

"I don't like Rudd, to be honest. But frankly people out here are sick to death of politics and we don't trust any of them anymore," said Jim Baker, 86, grabbing a bite at a fast-food restaurant near hard-scrabble western Blacktown.

"I have the Telegraph here, but I don't take much notice of the front. I just flick the pages until I'm past the first eight pages or so, past the politics."

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Before You Go

The Murdochs
Rupert Murdoch, Wendi Deng, Lachlan Murdoch(01 of44)
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News Corp. chairman Rupert Murdoch, left, his wife Wendi Deng and son Lachlan Murdoch leave the High Court in London after giving evidence to the Leveson inquiry, Thursday, April 26, 2012. (AP Photo/Sang Tan) (credit:AP)
Rupert Murdoch, Wendi Deng(02 of44)
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News Corp. chairman Rupert Murdoch and his wife Wendi Deng leave the High Court in London after giving evidence to the Leveson inquiry, Thursday, April 26, 2012. (AP Photo/Sang Tan) (credit:AP)
Rupert Murdoch(03 of44)
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FILE - In this Jan. 15, 2012 file photo Rupert Murdoch arrives at the 69th Annual Golden Globe Awards in Los Angeles. Murdochs News Corp., the global media conglomerate under fire for phone hacking and alleged bribery in Britain, posted a 47 percent increase in third-quarter net income thanks to strong performances at its U.S. pay-TV networks and movie studio (AP Photo/Matt Sayles, file) (credit:AP)
Rupert Murdoch(04 of44)
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News Corp. chairman Rupert Murdoch arrives at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Friday, July 13, 2012. (AP Photo/Paul Sakuma) (credit:AP)
The 20th Annual Sir Elton John Oscar Party - Los Angeles(05 of44)
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Wendi Murdoch arriving at the 84th Annual Academy Awards, held at the Kodak Theatre in Los Angeles, CA, USA on February 26, 2012. () (credit:PA)
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A campaigner wearing a giant mask depicting News Corporation's chairman Rupert Murdoch burns the Leveson report while another wearing a mask depicting British Prime Minister David Cameron, sits tied to a chair during a protest, calling on MPs to back reform legislation to stop any one media organisation developing a stranglehold over the British media, outside the Queen Elizabeth II Conference Centre in London where Lord Justice Brian Leveson is to release his report into the culture and practices of the British press and his recommendations for future regulation to prevent phone hacking, data theft, bribery and other abuses, Thursday, Nov. 29, 2012. (AP Photo/Sang Tan) (credit:AP)
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Elisabeth Murdoch arrives for the annual Red's Hot Women Awards 2012 at One Marylbone, London. (credit:PA)
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Media mogul Rupert Murdoch, center, and his wife Wendi Deng, top, watch Andy Murray of Britain play Roger Federer of Switzerland during the men's singles final match at the All England Lawn Tennis Championships at Wimbledon, England, Sunday, July 8, 2012. (AP Photo/Paul Gilham, Pool) (credit:AP)
James Murdoch, Lachlan Murdoch(09 of44)
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James Murdoch, left, son of Rupert Murdoch and deputy chief operating officer of News Corp., and Lachlan Murdoch, right, son of Rupert Murdoch and former executive with News Corp., arrive at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Wednesday, July 11, 2012. (AP Photo/Paul Sakuma) (credit:AP)
James Murdoch(10 of44)
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James Murdoch, son of Rupert Murdoch and deputy chief operating officer of News Corp., arrives at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Wednesday, July 11, 2012. (AP Photo/Paul Sakuma) (credit:AP)
Rupert Murdoch, Wendi Murdoch(11 of44)
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Media mogul Rupert Murdoch and his wife, Wendi, arrives at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Thursday, July 12, 2012. (AP Photo/Paul Sakuma) (credit:AP)
Lachlan Murdoch(12 of44)
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Lachlan Murdoch, son of Rupert Murdoch and former executive with News Corp., arrives at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Thursday, July 12, 2012. (AP Photo/Paul Sakuma) (credit:AP)
Rupert Murdoch, Wendi Murdoch(13 of44)
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Rupert Murdoch and his wife, Wendi, arrives at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Thursday, July 12, 2012. (AP Photo/Paul Sakuma) (credit:AP)
Sergey Brin, Wendy Deng(14 of44)
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Google co-founder Sergey Brin shows his "Google Glasss" to Wendi Deng, Rupert Murdoch's wife, at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Thursday, July 12, 2012. (AP Photo/Paul Sakuma) (credit:AP)
Lachlan Murdoch(15 of44)
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Lachlan Murdoch, son of Rupert Murdoch and former executive with News Corp., arrives at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, Friday, July 13, 2012. (AP Photo/Paul Sakuma) (credit:AP)
Rupert Murdoch, Michael Bloomberg(16 of44)
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From left, News Corporation CEO Rupert Murdoch, speaks as New York Mayor Michael Bloomberg looks on during a forum on The Economics and Politics of Immigration in Boston, Tuesday, Aug. 14, 2012. (AP Photo/Josh Reynolds) (credit:AP)
Rupert Murdoch,(17 of44)
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News Corporation CEO Rupert Murdoch, speaks during a forum on The Economics and Politics of Immigration in Boston at which Murdoch and New York Mayor Michael Bloomberg spoke, Tuesday, Aug. 14, 2012. (AP Photo/Josh Reynolds) (credit:AP)
Rupert Murdoch,(18 of44)
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News Corporation CEO Rupert Murdoch, speaks during a forum on The Economics and Politics of Immigration in Boston at which Murdoch and New York Mayor Michael Bloomberg spoke, Tuesday, Aug. 14, 2012. (AP Photo/Josh Reynolds) (credit:AP)
Rupert Murdoch,(19 of44)
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News Corporation CEO Rupert Murdoch, listens to introductions during a forum on The Economics and Politics of Immigration in Boston at which Murdoch and New York Mayor Michael Bloomberg spoke, Tuesday, Aug. 14, 2012. (AP Photo/Josh Reynolds) (credit:AP)
Rupert Murdoch, Michael Bloomberg(20 of44)
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From left, News Corporation CEO Rupert Murdoch, looks on as New York Mayor Michael Bloomberg speaks during a forum on The Economics and Politics of Immigration in Boston, Tuesday, Aug. 14, 2012. (AP Photo/Josh Reynolds) (credit:AP)
James Murdoch Gives Evidence At The Leveson Inquiry(21 of44)
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LONDON, ENGLAND - APRIL 24: Protesters from the campaign group 'Avaaz' demonstrate outside the High Court with large James and Rupert Murdoch masks as former News International chairman James Murdoch gives evidence to The Leveson Inquiry on April 24, 2012 in London, England. This phase of the inquiry into the culture, practice and ethics of the press in the United Kingdom is looking at the owners of various media groups. Rupert Murdoch, owner of News Corp, will give evidence tomorrow. (Photo by Oli Scarff/Getty Images) (credit:Getty)
James Murdoch, son of media mogul Rupert(22 of44)
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James Murdoch, son of media mogul Rupert Murdoch, arrives at London's High Court, on April 24, 2012, ahead of his appearance before the Leveson Inquiry. The Inquiry was set up after a phone hacking scandal led to the closure of the News of the World tabloid in 2011. Rupert Murdoch appears at the Inquiry on Wednesday and possibly Thursday. AFP PHOTO / LEON NEAL (Photo credit should read LEON NEAL/AFP/Getty Images) (credit:Getty)
Rupert Murdoch Returns To His Home Ahead Of His Appearance At the Leveson Inquiry(23 of44)
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LONDON, ENGLAND - APRIL 23: Rupert Murdoch, CEO of News Corporation arrives at his house, two days before he is due to give evidence to the Leveson Inquiry, on April 23, 2012 in London, England. This phase of the inquiry into the culture, practice and ethics of the press in the United Kingdom is looking at the owners of various media groups. The inquiry, which may take a year or more to complete, comes in the wake of the phone hacking scandal that saw the closure of The News of The World newspaper in 2011. (Photo by Matthew Lloyd/Getty Images) (credit:Getty)
Rupert Murdoch (C), Chairman and CEO of(24 of44)
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Rupert Murdoch (C), Chairman and CEO of News Corp. and John Witherow (R), Editor of the Sunday Times of London, leave the funeral of slain Times of London correspondent Marie Colvin, at St. Dominic's Catholic Church on March 12, 2012 in Oyster Bay, New York. Colvin was killed in Syria along with French photographer Remi Ochlik as the two were covering the violence in the city of Homs on February 22. AFP PHOTO/Stan HONDA (Photo credit should read STAN HONDA/AFP/Getty Images) (credit:Getty)
Rupert Murdoch (L), Chairman and CEO of(25 of44)
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Rupert Murdoch (L), Chairman and CEO of News Corp. and John Witherow (R), Editor of the Sunday Times of London, leave the funeral of slain Times of London correspondent Marie Colvin, at St. Dominic's Catholic Church on March 12, 2012 in Oyster Bay, New York. Colvin was killed in Syria along with French photographer Remi Ochlik as the two were covering the violence in the city of Homs on February 22. AFP PHOTO/Stan HONDA (Photo credit should read STAN HONDA/AFP/Getty Images) (credit:Getty)
The First Editions Of The Sun On Sunday Hit The Newstands(26 of44)
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BROXBOURNE, UNITED KINGDOM - FEBRUARY 25: (EDITORS NOTE: THIS IMAGE IS FREE FOR USE UNTIL MARCH 3 2012) In this handout photograph provided by News International, Rupert Murdoch, Chairman and CEO of News Corporation, reviews the first edition of The Sun On Sunday as it comes off the presses on February 25, 2012 in Broxbourne, England. Around 3 million copies of 'The Sun On Sunday', the first ever Sunday edition of News International's daily tabloid newspaper 'The Sun', are due to go on sale on Sunday February 26, 2012. (Photo by Arthur Edwards/News International via Getty Images) (credit:Getty)
The First Editions Of The Sun On Sunday Hit The Newstands(27 of44)
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BROXBOURNE, UNITED KINGDOM - FEBRUARY 25: Rupert Murdoch, Chairman and CEO of News Corporation, arrives to oversee the first editions of the 'The Sun On Sunday' newspaper coming off the priniting press on February 25, 2012 in Broxbourne, England. Around 3 million copies of 'The Sun On Sunday', the first ever Sunday edition of News International's daily tabloid newspaper 'The Sun', are due to go on sale on Sunday February 26, 2012. News Corporation CEO Rupert Murdoch, who has flown into the UK to oversee the launch, said he would be 'very happy' if sales of his new paper exceed two million copies and enjoyed similar success to the 'News Of The World', its defunct predecessor. (Photo by John Stillwell - WPA Pool/Getty Images) (credit:Getty)
Rupert Murdoch Sighting In London(28 of44)
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LONDON, ENGLAND - FEBRUARY 21: News Corp. CEO Rupert Murdoch smiles as he leaves his flat on February 21, 2012 in London, England. Mr Murdoch has announced that a new paper 'The Sun on Sunday' will publish it's first edition this weekend. (Photo by Peter Macdiarmid/Getty Images) (credit:Getty)
69th Annual Golden Globe Awards - Arrivals(29 of44)
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BEVERLY HILLS, CA - JANUARY 15: Rupert Murdoch and wife Wendi Murdoch arrive at the 69th Annual Golden Globe Awards held at the Beverly Hilton Hotel on January 15, 2012 in Beverly Hills, California. (Photo by Jason Merritt/Getty Images) (credit:Getty)
Rupert Murdoch Delivers Keynote At The National Summit On Education Reform(30 of44)
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SAN FRANCISCO, CA - OCTOBER 14: News Corp. CEO Rupert Murdoch delivers a keynote address at the National Summit on Education Reform on October 14, 2011 in San Francisco, California. Rupert Murdoch was the keynote speaker at the two-day National Summit on Education Reform. (Photo by Justin Sullivan/Getty Images) (credit:Getty)
Rupert Murdoch Delivers Keynote At The National Summit On Education Reform(31 of44)
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SAN FRANCISCO, CA - OCTOBER 14: News Corp. CEO Rupert Murdoch (L) shakes hands with Joel Klein (R) during a keynote address at the National Summit on Education Reform on October 14, 2011 in San Francisco, California. Rupert Murdoch was the keynote speaker at the two-day National Summit on Education Reform. (Photo by Justin Sullivan/Getty Images) (credit:Getty)
Rupert Murdoch Delivers Keynote At The National Summit On Education Reform(32 of44)
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SAN FRANCISCO, CA - OCTOBER 14: News Corp. CEO Rupert Murdoch pauses as he delivers a keynote address at the National Summit on Education Reform on October 14, 2011 in San Francisco, California. Rupert Murdoch was the keynote speaker at the two-day National Summit on Education Reform. (Photo by Justin Sullivan/Getty Images) (credit:Getty)
Occupy Wall Street Protestors March Down New York's Fifth Avenue(33 of44)
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NEW YORK, NY - OCTOBER 11: Protesters with the 'Occupy Wall Street' movement yell up to the residence of NewsCorp CEO Rupert Murdoch on October 11, 2011 in New York City. Hundreds of activists marched along 5th avenue and Park Avenue stopping in front of the buildings where prominent heads of major business and financial institutions live. Many of the 'Occupy Wall Street' demonstrations have been living in Zuccotti Park in the Financial District near Wall Street. The activists have been gradually converging on the financial district over the past three weeks to rally against the influence of corporate money in politics among a host of other issues. The protests have begun to attract the attention of major unions and religious groups as the movement continues to grow in influence. (Photo by Spencer Platt/Getty Images) (credit:Getty)
The generval view shows newspapers in Me(34 of44)
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The generval view shows newspapers in Melbourne on July 21, 2011 with coverage dominated by Rupert Murdoch's appearance before a British parliamentary committee and moves in Australia to introduce a legal right to privacy after the phone-hacking scandal in Britain, paving the way for people to sue media organisations for serious breaches. Home Affairs Minister Brendan O'Connor said he was acting now after the News of the World furore heightened concerns. AFP PHOTO / William WEST (Photo credit should read WILLIAM WEST/AFP/Getty Images) (credit:Getty)
News Corporation Chief Rupert Murdoch re(35 of44)
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News Corporation Chief Rupert Murdoch reads a copy of one his newspapers, The London Times, as he leaves his London home on July 20 2011. Australian Prime Minister Julia Gillard on Wednesday warned Rupert Murdoch's Australian arm it faced some 'hard questions' as calls intensified for a media inquiry following the British hacking scandal. Gillard declined to comment on Murdoch's grilling by British MPs over the outcry that saw him close tabloid News of the World and dump his bid for satellite broadcaster BSkyB, but said the Australian public was concerned. AFP PHOTO/CARL COURT (Photo credit should read CARL COURT/AFP/Getty Images) (credit:Getty)
Leveson Inquiry(36 of44)
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Lachlan Murdoch leaving his father Rupert's home in Mayfair, central London as his brother James, gives evidence to the Leveson Inquiry into press standards. (credit:Yui Mok/PA Wire)
Rupert Murdoch with Queen Elizabeth II in 1985(37 of44)
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File photo dated 28/02/1985 of Queen Elizabeth II with proprietor Rupert Murdoch (left) at The Times newspaper building at Grays Inn Road, London, to mark the paper's bicentenary.
Rupert Murdoch with Princess Diana(38 of44)
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Diana, Princess of Wales with Rupert Murdoch, proprietor of The Times, as she arrived at Hampton Court Palace to attend a gala evening to celebrate the newspaper's bicentenary.
Media - News of the World Take-over Meeting - Connaught Rooms, Bloomsbury(39 of44)
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Handshakes by Rupert Murdoch, chairman of the Australian group News Ltd[Right] and Sir William Carr, chairman of the news of the world organisation, after what was for them the succesful outcome of the vital NOTW shareholdersw meeting at the connaught rooms, bloomsbury, london. By a show of hands, shareholders voted 299 in favour and 20 against a resolution regarding the creation of further ordinary shares and their allotment to News ltd. This meant the virtual end of the take-over bid by Milliionaire labour MP Robert Maxwell. (credit:PA/PA Archive)
New technology print works(40 of44)
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Newspaper proprietor Rupert Murdoch holds copies of the Sun at his new high technology print works in Wapping, East London. (credit:PA/PA Archive)
Thatcher papers on show(41 of44)
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BLACK AND WHITE ONLY. File photo dated 22/01/1981 of Rupert Murdoch at a press conference in London, discussing the future of The Times newspaper. (credit:PA/PA Wire)
New Sunday Sun tabloid(42 of44)
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File picture, dated 17/11/1969, Rupert Murdoch looks at one of the first copies of The Sun newspaper, at the News of the World building , in London. (credit:PA/PA Wire)
Media - The Times Newspaper Bicentenary - London(43 of44)
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Queen Elizabeth II and the Duke of Edinburgh with proprietor Rupert Murdoch, left, at The Times newspaper building at Grays Inn Road, London, to mark the paper's bicentenary. (credit:PA/PA Archive)
Margaret Thatcher, Rupert Murdoch(44 of44)
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FILE - In this Nov. 14, 1991, file photo, Margaret Thatcher accepts the United Cerebral Palsy of New York's 37th Annual Humanitarian Award in New York from Rupert Murdoch. (AP Photo/Mike Albans, File) (credit:AP)