Billionaire investor Ron Burkle is working with a union representing workers at Dow Jones & Co. to explore alternatives to Rupert Murdoch's $5 billion bid for the company, which publishes The Wall Street Journal.

The Independent Association of Publishers' Employees said in a statement Tuesday that it had reached out to Burkle, as well as the billionaire investor Warren Buffett and others, in an attempt to find other potential buyers for Dow Jones. The union strongly opposes Murdoch's bid, saying he might slant the Journal's coverage to suit his business interests.

Burkle, who made a fortune investing in supermarket chains, recently lost out on a joint bid for Tribune Co. with fellow investor Eli Broad, and also worked with newspaper unions on failed bids for Knight Ridder Inc. and for The Philadelphia Inquirer and Philadelphia Daily News.

After initially rebuffing Murdoch's offer in early May, Dow Jones' controlling shareholders, the Bancroft family, held an initial meeting with Murdoch and several of his senior executives Monday to discuss his interest in Dow Jones. IAPE, which represents about a quarter of Dow Jones employees, said it hoped the Bancrofts would decide not to sell the company, but that if they did, that they would consider alternatives to Murdoch.

Both Murdoch and a family representative said the talks Monday were "constructive," but neither provided any further detail and it was unclear when any follow-up conversations might occur. The Bancroft family has said it is "resolute" in its commitment to protect the Journal's independence and integrity.

In addition to the union, former Dow Jones Chairman and Chief Executive Peter Kann has expressed opposition to Murdoch's bid, as has former board member Jim Ottaway Jr., who controls 5 percent of the company's shareholder vote.

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The Journal ran a lengthy story on its front page Tuesday saying that Murdoch's media properties have made coverage decisions that advanced the interests of his media conglomerate, News Corp., blurring the line between the business and news sides of the company.

A News Corp. spokesman declined to comment on Burkle's decision to work with the Dow Jones union. News Corp. has said any concerns about Murdoch meddling with the Journal's news coverage are unwarranted. A Dow Jones spokeswoman declined to comment.

In Omaha, Buffett's assistant Debbie Bosanek confirmed that a letter from the union had been received Tuesday but would make no further comment. Steve Yount, president of the IAPE union, declined to identify the other investors the union had reached out to. It has also said it is consulting with Ownership Associates of Cambridge, Mass., which specializes in employee stock ownership structures and which worked with newspaper union representatives at Knight Ridder in an effort to buy the paper.

Burkle had previously expressed an interest in buying Tribune, publisher of the Los Angeles Times, Chicago Tribune and other newspapers, together with Broad, but that company eventually agreed to be taken private in a deal sponsored by Chicago real estate mogul Sam Zell.

Burkle had also teamed up last year with a union representing employees at nine Knight Ridder newspapers in an effort to buy that company. However Knight Ridder wound up selling itself to McClatchy Co., another California-based publisher. He then tried to buy two former Knight Ridder papers that McClatchy decided to sell, The Philadelphia Inquirer and Philadelphia Daily News, but lost out to a consortium led by local businessman Brian Tierney.

Burkle started as a bag boy in the supermarket chain where his father was an executive. He later purchased the chain, then bought and sold larger companies, including Ralph's supermarkets. His wealth is estimated at $2.3 billion. Burkle is a close friend of former President Bill Clinton and has raised funds for U.S. Sen. Hillary Clinton, D-N.Y.

The Bancroft family, who are descendants of former Dow Jones owner Clarence Barron, control 64 percent of the company's shareholder vote through a special class of supervoting shares. They also own about 25 percent of the company's economic interest.

Dow Jones's shares rose 41 cents to $60.57 in afternoon trading Tuesday, just above Murdoch's offer of $60. That price represents a huge premium of about 65 percent above the level Dow Jones shares were trading before the bid became public in early May, and many Wall Street analysts are skeptical that another bidder would be able to top Murdoch's price.

In addition to the prestige of owning the most powerful newspaper in the U.S. business world, ownership of Dow Jones would give Murdoch a major leg up in starting a new all-news cable TV channel focused on business later this year.

© 2007 Associated Press.

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