New York: According to a report in The Wall Street Journal (WSJ) Rupert Murdoch''s News Corporation has arrived at a tentative agreement on its takeover offer for Dow Jones.

According to the report, Richard Zannino, chief executive, Dow Jones yesterday agreed tentatively to News Corp''s $5-billion takeover bid, though the company''s controlling Bancroft family remains divided on the deal. (See: Dow Jones board member opposes sale to News Corp) Zannino indicated to News Corp. that the Bancroft family''s position on the deal is too close to call.

At a lunch meeting on Monday between Murdoch and Zannino, Murdoch suggested the possibility of nominating former The Wall Street Journal managing editor Paul Steiger to the board of News Corp, the WSJ said, citing a source.

Michael Elefante, the Bancroft family''s lead trustee, has scheduled a meeting for Thursday to present the agreement to all Bancroft family members before asking for their final vote, the WSJ said on its website.

The in-principle agreement will be placed before the full Dow Jones board today and any deal would need the backing of the Bancroft family, which controls 64-per cent of the voting rights in the firm.

Some members of the family, along with many shareholders have been attracted by the $60-per-share price representing a 65-per cent premium to Dow Jones'' market price when the deal was announced (See: Bancrofts to consider Muroch''s $5 billion bid for Dow Jones).

Other Bancroft family members are still opposed to Murdoch controlling Dow Jones, and the family has been divided over his bid. Some Bancrofts, and many Dow Jones journalists and editors also oppose the offer because they fear Murdoch would interfere with the company''s news operations to benefit his business interests, thus eroding the company''s reputation for reliable business news.

Bancrofts who oppose the bid also have the support of former Dow Jones executive and board member Jim Ottaway Jr, who controls his family''s 6.2-per cent of the company''s voting shares. If a sufficient number of Ottaways and the Bancrofts do not accept the deal, they could block the News Corp bid.

Ever since launching the surprise bid in May, Murdoch''s company has been battling to reassure sceptics that the paper''s independence would be maintained under New Corp''s ownership.

According to the newspaper report, the family will hold a meeting to discuss the latest offer on Thursday. Meanwhile, Dow Jones directors have been searching for a bidder to rival the News Corp offer, but no one has come forward with an offer that trumps News Corp''s $60-a-share price.

Unhappy with a possible merger with Rupert Murdoch''s News Corp, the main union at Dow Jones that represents some 2,000 employees, the Independent Association of Publishers'' Employees (IAPE), had facilitated an alternate bid from US supermarket tycoon Ron Burkle and internet entrepreneur Brad Greenspanrope. (See: Dow Jones receives alternate bids)

A successful bid would bring Dow Jones publications including the The Wall Street Journal and Barron''s under the same stable as News Corp''s New York Post in the US, and The Sun and The Times in the UK.