Rupert Murdoch's News Corp said yesterday it was "highly unlikely" to proceed with its $5 billion (€3.6 billion) bid for Dow Jones & Co unless it won more support from Dow Jones's controlling family.

The comment from a News Corp spokesman pushed Dow Jones shares down as much as 8.5 per cent. The stock was down 3.1 per cent at $52.76 in early afternoon trading in the US, compared to News Corp's bid price of $60 per share.

The Bancroft family, which controls more than 64 per cent of Dow Jones's voting shares, was expected to decide by last night US time whether to support the Murdoch bid.

The News Corp spokesman did not specify what level of Bancroft support is needed, but said it was "highly unlikely we would proceed if we didn't get more of the Bancroft family supporting the deal."

A source familiar with the situation estimated between 25 per cent and 32 per cent of voting shares held by the Bancrofts favoured Murdoch's bid, but stressed the situation was in flux. The final tally has not been firmed. The source said that to be comfortable, Mr Murdoch would probably want a support level of 28 per cent to 30 per cent.

Outside shareholders hold about 29 per cent of voting shares and are expected to largely back the deal.

Some Bancrofts want a higher price from News Corp, but the source said Murdoch had indicated he would not raise his bid.

Dow Jones's Wall Street Journal reported late on Sunday that family members holding about 28 per cent of voting power had indicated their support for the deal.

Dow Jones shares have slipped from a high of nearly $62 in June on concerns that the deal could fall through.

Analysts expect the stock to plummet to levels much closer to the $36 that Dow Jones was trading at before the Murdoch bid was made public. Dow Jones and Bancroft family officials declined to comment yesterday.

The board of Dow Jones endorsed the offer two weeks ago, sending the deal to the Bancroft family for approval.

The family, which has controlled Dow Jones for more than a century, has since been trying to decide among its numerous members whether to support the bid. Michael Elefante, a Dow Jones board member and chief trustee of the Bancrofts' shares, asked for family members to decide whether or not they support Mr Murdoch's bid by the end of business yesterday, the source familiar with the situation said. - ( Reuters)