FT parents bidding for Dow Jones, claims The Telegraph

Broadsheet newspaper The Daily Telegraph has claimed in an article that Pearson, the corporation which owns the Financial Times, is involved in an "desperate attempt" to buy US business information group Dow Jones. If successful the bid will scupper the plans of media mogul Rupert Murdoch.

According to the Telegraph, Pearson has been looking for a partner to counter the £2.5bn bid from the Aussie known as Dirty Digger. Unnamed analysts tell the Telegraph that a combined Pearson and Dow Jones group, which owns news aggregator service Factiva, would be a "formidable force in business journalism". One describes the Dow Jones newswires as another useful arm to the FT. Not only would a combination include two of the world's most famous business newspapers, the FT and Wall Street Journal, as well as Factiva, but would also include leading magazine and market analysis group The Economist.  Pearson owns 50% of The Economist group.

There are global benefits from a link up between Dow Jones and Pearson. The latter has a strong presence in the US with its education division, but the FT has not fared well there, no doubt because of the power of the Wall Street Journal. Equally the Wall Street Journal has not done well in Europe.

According to the Telegraph Pearson is in deep talks with General Electric to construct a joint bid. General Electric owns the CNBC business channel in the US, which competes with Murdoch's Fox business channel. CNBC is supplied by Dow Jones and has close relationships.

There is widespread concern about Murdoch buying the Dow Jones group, the Bancroft family – a majority stakeholder - is concerned about Murdoch's famed reputation for meddling with editorial independence to push his own right wing agenda. The information and media industry is also deeply concerned about Murdoch owning another major slice of the information real estate.

Murdoch has been preparing his bid by wooing the Bancroft family and got shot of his share of weak Australian news group Fairfax to release more funds.

If Pearson and a partner are to be successful, they will need to beat the $60 a share  offer that Murdoch's News Corporation has placed on the table.