The Bancroft Family remains unimpressed by Rupert Murdoch's offer to buy the Dow Jones Co. (NYSE: DJ) at a premium of more than 65% to its market price prior to his bid. The family met by phone to discuss Murdoch's offer of a set on the News Corp (NYSE: NWS) board, and did not comment to the media on it. However sources close to the Bancrofts said that the offer had not caused any change in their views about the proposed deal.

Several Wall Street Journal reporters based in China wrote a letter urging the Bancroft family to reject the deal, and it seems likely that they will. But I don't think they should. As controlling shareholders with seats on the company's board, the Bancrofts have, I believe, a responsibility to do what is right for promoting shareholder value. Based on the huge premium offered, Murdoch's bid is the right thing for the average shareholder. I think that the Bancroft family needs to do one of three things:

1. Accept Rubert Murdoch's offer of 60 dollars per share for the company.
2. Hire an investment bank to find a better offer -- This seems unlikely.
3. Take the company private themselves. If they believe that shareholders would be better served with a rejection of Murdoch's bid, they should step up and offer to buy them out for the price that Murdoch offered.

I doubt that any of these things will happen, and this is a pretty bad example of corporate governance.