Aug 1, 2007 News Corp, buys Dow Jones for $5.6 billionNews Corp. said on Wednesday that it would buy Dow Jones for $5.6 billion, adding The Wall Street Journal to its worldwide media empire and ending a century of family ownership of one of the top U.S. business news sources.
The hard-fought deal--won after long negotiations and intense wrangling among members of Dow Jones' controlling shareholder, the Bancroft family--helps News Corp.'s Rupert Murdoch achieve his decades-long dream of running the venerable financial daily.
The Journal and other Dow Jones properties also add to Murdoch's sprawling media empire--from the Fox television stations and the MySpace.com online social network to the Times of London and HarperCollins Publishers--and would aid the launch of a Fox business channel later this year.
In a joint statement, Dow Jones and News Corp. said Bancroft family members holding about 37 percent of Dow Jones' voting power agreed to support the deal.
That level of support represents more than half of the 64 percent voting shares held by the family.
"The process of thoroughly reviewing a broad range of possible alternatives for Dow Jones has been long, complex and arduous."
--Bancroft family statement Dow Jones shareholders still must approve the buyout, an outcome that analysts have said is all but guaranteed, given the 65 percent premium that Murdoch offered.
Dow Jones, which competes with Reuters Group, also owns the Barron's financial weekly, the MarketWatch financial news Web site and Dow Jones Newswires.
Other News Corp. properties include the American Idol singing talent show, on the Fox network, and British tabloid newspaper The Sun, which features photographs of topless women on its "Page 3."
Under the terms of the agreement, which has been approved by the boards of both companies, Dow Jones shareholders will receive $60 in cash for each share of common stock or Class B common stock that they own, the companies said.
Up to 250 shareholders would be allowed to convert their Dow Jones shares into Class B shares of the News Corp. subsidiary that will house Dow Jones. They then could exchange those shares for Class A News Corp. shares.
The move, which covers up to 10 percent of Dow Jones shares, would let eligible shareholders avoid a tax hit on the transaction. The eligible shareholders are not limited to Bancroft family members, said a source familiar with the matter.
One Bancroft family member or another "mutually acceptable person" will be appointed to the News Corp. board, the companies said.
They also agreed on a five-member committee to oversee the editorial independence of Dow Jones' news operations.
The members include retired Associated Press Chief Executive Louis Boccardi, Massachusetts Institute of Technology Media Lab co-founder Nicholas Negroponte, former Tribune Publishing President Jack Fuller, former Washington State Congresswoman Jennifer Dunn and former Detroit News editorial page editor Thomas Bray.
Bray also is a writer for Dow Jones' OpinionJournal. The Journal reported that he will serve as chairman of the committee.
Dow Jones was also discussing a plan to have News Corp. cover the legal fees incurred by the Bancroft family, amounting to at least $30 million, a source familiar with the matter said Tuesday.
The acquisition is expected to close in the fourth quarter, the companies said.
The Bancrofts are among a group of venerable newspaper families that includes the Sulzberger clan, who run The New York Times Co., and the Chandlers, who cashed out of Tribune Co. earlier this year.
Unlike their peers, the Bancrofts refrained from interfering with the Journal's news operations. But that remoteness amid sweeping changes in the way people get their news due to the Internet led to criticism that the family was neglecting the company.
"The process of thoroughly reviewing a broad range of possible alternatives for Dow Jones has been long, complex and arduous," the Bancroft family said in a statement.
In selling to Murdoch, the Bancrofts pass Dow Jones to another media dynasty. Murdoch, who built News Corp. from two Australian papers, also controls his global media empire and sees its future someday in the hands of his children.
Winning Dow Jones did not come easy. The 76-year-old media mogul spent at least the past three months courting the Bancroft family, and he thanked them after clinching the deal.
"I want to offer the Bancrofts my thanks, and an assurance that our company and my family will be equally strong custodians," he said.
The family initially rejected Murdoch's bid over fears that he would tarnish the Journal's image and use Dow Jones' news operations to further his business interests. Many Journal reporters and some other Dow Jones employees also opposed the deal and sought to attract other buyers.
"It's a bad thing for Dow Jones and American journalism that the Bancroft family could not resist Rupert Murdoch's generous offer," said former Dow Jones board member and executive Jim Ottaway Jr., whose family controls 7 percent of Dow Jones' voting shares.
"It's a sad thing that the 105-year family tradition of protecting Dow Jones' independence as a public trust will end," he said in a statement.
In the end, the rich offer proved too attractive for many family members to resist, and it all but eliminated the possibility of competing proposals. News Corporation
News Corporation (NASDAQ: NWS,NASDAQ: NWSA,ASX: NWS,ASX: NWSLV), often abbreviated to News Corp., is the world's second-largest media conglomerate (behind The Walt Disney Company) and the world's third largest in entertainment as of 2009.
The company's Chairman, Chief Executive Officer and Founder is Rupert Murdoch.
News Corporation is a publicly-traded company listed on the NASDAQ, & on the Australian Securities Exchange. Formerly incorporated in South Australia, the company was re-incorporated into Delaware General Corporation Law after a majority of it's Australian shareholders approved the move on November 12, 2004.In 1995, the Fox network became the object of scrutiny from the Federal Communications Commission (FCC) when it was alleged that its Australian base made Murdoch's ownership of Fox illegal.News Corp launched the Foxtel pay television network in Australia in a partnership with Telstra and Publishing and Broadcasting Limited.
News Corp was created in 1980 by Rupert Murdoch as a holding company for News Limited. News Limited was created by Murdoch from the assets he inherited in 1952 following the death of his father, Sir Keith Arthur Murdoch
Corporate governanceThe company's Board of Directors consists of 15 individuals:
Rupert Murdoch (Chairman of the Board & Chief Executive Officer)
Chase Carey (President, Chief Operating Officer & Deputy Chairman)
Daniel Suárez García
David DeVoe (Chief Financial Officer)
Sir Roderick Eddington (Lead Director)
James Murdoch (Chairman & Chief Executive Officer Europe & Asia)
Arthur Siskind (Senior Adviser to the Chairman)
Stanley Shuman (Emeritus)
 Office of the chairman
Rupert Murdoch (Chairman and CEO)
Chase Carey (President, Chief Operating Officer & Deputy Chairman)
David DeVoe (Chief financial officer)
Lawrence Jacobs (Group general counsel)
James Murdoch (Chairman and CEO Europe and Asia)
Roger Ailes (Chairman of Fox Television Stations Group)
Daniel Suárez García (Chairman and CEO Latin America) List of assets owned by News Corporation
HarperCollins book publishing company
HarperCollins India (40%)[clarification needed] joint venture with India Today Group
Zondervan Christian book publisher
Youth Specialties - organisation helping youth workers worldwide through training seminars and conventions, resources and the internet.
Inspirio - religious gift production.Newspapers
Australia published by News Limited.
The Australian (Nationwide)
Community Media Group (16 QLD & NSW suburban/regional titles)
Cumberland-Courier Newspapers (23 suburban/commuter titles)
The Courier-Mail (Queensland)
The Sunday Mail (Queensland)
The Cairns Post (Cairns, Queensland)
The Gold Coast Bulletin (Gold Coast, Queensland)
The Townsville Bulletin (Townsville, Queensland)
The Daily Telegraph (New South Wales)
The Sunday Telgraph (New South Wales)
Herald Sun (Victoria)
Sunday Herald Sun (Victoria)
The Weekly Times (Victoria)
Leader Newspapers (33 suburban Melbourne, VIC titles)
MX (Sydney, Melbourne and Brisbane CBD)
The Geelong Advertiser (Geelong, Victoria)
The Advertiser (South Australia)
The Sunday Mail (South Australia)
Messenger Newspapers (11 suburban Adelaide, SA titles)
The Sunday Times (Western Australia)
The Mercury (Tasmania)
Quest Newspapers (19 suburban Brisbane, QLD titles)
The Sunday Tasmanian (Tasmania)
Northern Territory News (Northern Territory)
The Sunday Territorian (Northern Territory)
The Tablelands Advertiser (Atherton Tablelands and the Far North, Queensland)
Fiji Times (National)
Papua New Guinea
Papua New Guinea Post-Courier (National)(62.5%)
UK and Ireland newspapers, published by subsidiaries of News International Ltd.
News Group Newspapers Ltd.
the tabloid The Sun (published in Ireland as The Irish Sun)
the tabloid News of the World
Times Newspapers Ltd.
the broadsheet The Sunday Times
the 'ex-broadsheet' (Now in compact form) The Times
The Times Literary Supplement
US newspapers and magazines
The New York Post
Dow Jones & Company
Consumer Media Group
The Wall Street Journal - the leading US financial newspaper.
Wall Street Journal Europe
Wall Street Journal Asia
Barron's - weekly financial markets magazine.
Marketwatch - Financial news and information website.
Far Eastern Economic Review
Enterprise Media Group
Dow Jones Newswires - global, real-time news and information provider.
Factiva - provides business news and information together with content delivery tools and services.
Dow Jones Indexes - stock market indexes and indicators, including the Dow Jones Industrial Average.
Dow Jones Financial Information Services - produces databases, electronic media, newsletters, conferences, directories, and other information services on specialised markets and industry sectors.
Betten Financial News - leading Dutch language financial and economic news service.
Local Media Group
Ottoway Community Newspapers - 8 daily and 15 weekly regional newspapers.
STOXX (33%)- joint venture with Deutsche Boerse and SWG Group for the development and distribution of Dow Jones STOXX indices.
Vedomosti (33%) - Russia's leading financial newspaper (joint venture with Financial Times and Independent Media).
The Timesledger Newspapers of Queens, New York:
Bayside Times, Whitestone Times, Flushing Times, Fresh Meadows Times, Little Neck Ledger, Jackson Heights Times, Richmond Hill Times, Jamaica Times, Laurelton Times, Queens Village Times, Astoria Times, Forest Hills Ledger, Ridgewood Ledger, Howard Beach Times
The Courier-Life Newspapers in Brooklyn
The Brooklyn Paper
The Times-Herald Record (Middletown, New York)Magazines
News America Marketing (Smartsource) (weekly Sunday newspaper coupon insert/website)
Australian Country Style
Australian Golf Digest
Australian Good Taste
Live to Ride
Super Food Ideas
Vogue Entertaining & Travel
InsideOut (UK Based Magazine)
 Music and radio
Fox Film Music Group
Radio City(20%, held through STAR TV) - commercial FM network with stations in 20 cities.
Best FM (50%)
50% of the National Rugby League (Australia and New Zealand)
Majority ownership of the Brisbane Broncos (68.9%) and full ownership of the Melbourne Storm rugby league team.
Colorado Rockies (15%)Studios
Fox Filmed Entertainment: 20th Century Fox's parent company
20th Century Fox: a film production company
20th Century Fox Television - primetime television programming.
20th Television - television distribution (syndication).
Fox Searchlight Pictures - specialised films.
Fox 2000 Pictures - general audience feature films.
Fox Television Studios(productions)- market specific programming e.g. COPS.
Fox Television Studios International
Fox World Productions
Fox World Australia
Fox TV Studios France
Fox TV Studios India
Natural History New Zealand - natural world documentaries, non-fiction programming.
Fox Faith - Promotion and distribution of Christian and related "family friendly" movies on DVD and some theatrical release.
Fox Studios Australia, Sydney, New South Wales
Blue Sky Studios - production of CGI films e.g. Ice Age.
Fox Entertainment Group
New Regency Productions (20%) - general audience feature films.
Regency Enterprises (20%) - parent company of New Regency Productions (50%).
BSkyB Studios London, EnglandTV
News Corp agreed to sell eight of its television stations to Oak Hill Capital Partners for approximately $1.1 billion as of 22 December 2007. The stations are US Fox affiliates.Broadcast
Fox Broadcasting Company (Fox), a US broadcast television network
My Network TV, a US broadcast television network
Fox Television Stations Group, a group of owned and operated Fox television stations
Saeta TV Channel 10, channel of Uruguay
ITV plc (17.5%), a British broadcast television network and the UK's largest advertising revenue based broadcaster via BSkyB, although a recent legal decision will require this stake to be cut.
News Corp Europe
bTV, a broadcast television network in Bulgaria. They sold this to CME in February 2010.
B1 TV (12,5%), a broadcast television network in Romania, in partnership with Ismar International NVkkkk
Fox Televizija, a broadcast television network in Serbia (49%). They sold this to Antenna Group in January 2010
Fox Turkey, a Turkish terrestrial channel (56,5%) (formerly TGRT)
Imedi Media Holding (100%), a Georgian radio and TV broadcaster.
Israel 10 (9%), a terrestrial channel in Israel.
LNT (100%), a terrestrial channel in Latvia
TV5 Riga (100%), a terrestrial channel in Latvia
Cielo (100%), a free channel in Italy
e2 (30%), a free channel in turkey
ANTV (20%), a private television station in Indonesia, under the administration and label of STAR TV
Prime Television New Zealand - commercial TV station, interest held through stake in SKY Network Television
 Satellite television
BSkyB, United Kingdom (39.1% holding).
Foxtel (25%), Australia, a joint venture with Telstra and Publishing and Broadcasting Limited
SKY Network Television , New Zealand (44%)
Sky Italia, Italian satellite TV service
Fox Channels Italy, Italian Broadcast and Production Company (with 2 HDTV)
Sky Latin America, Latin American satellite TV service
Sky Deutschland (39.96%), Germany's largest pay TV provider
STAR TV, an Asian satellite TV service having 300 million viewers in 53 countries (it acquired Vijay TV and Asianet, two prominent south Indian networks)
Phoenix Television (17.6%), satellite TV network with landing rights in Hong Kong, and select provinces on Mainland China
Tata Sky (20%), an Indian DTH TV service (in partnership with Tata Group)Cable
Cable channels owned (in whole or part) and operated by News Corporation include:
Fox Business Network, a business news channel.
Fox Classics, a channel airing classic TV shows & movies
Fox Movie Channel, an all-movie channel that airs commercial-free movies from 20th Century Fox film library
Fox News Channel, a 24-hour news channel
Fox Sports Net, a chain of US regional cable television networks broadcasting local sporting events linked together by national sports news programming. Local channels include "Fox Sports Southwest", "Fox Sports Detroit", etc. (some affiliates are owned by Cablevision).
SportSouth, a regional sports network in the United States, with its headquarters in Atlanta, Georgia, and affiliate of Fox Sports Net.
Sun Sports a regional sports network in the United States, with its headquarters in Miami, Florida, and affiliate of Fox Sports Net.
Fox College Sports, a college sports network consisting of three regionally-aligned channels, mostly with archived Fox Sports Net programs but also some live and original content.
Fox Sports International
Fox Soccer Channel, a United States digital cable network specializing mainly in soccer.
Fox Sports Middle East - English language sports network airing in Middle East countries including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, UAE & Yemen.
Fox Pan American Sports (37.9%) - joint venture with Hicks, Muse, and Tate & Furst.
Fox Sports en Español (50%), a Spanish-language North American cable sports network; its sports lineup is tailored to appeal to a Latin American audience.
Fox Sports en Latinoamérica, a Mexico-based Latin American satellite and cable sports network.
FX Networks, a cable network broadcasting reruns of programming previously shown on other channels, but recently creating its own programming, including the Emmy Award-winning programs The Shield and Damages.
Big Ten Network, cable and satellite channel dedicated to The Big Ten Conference, launched Aug 2007 (49%)
National Geographic Channel (joint venture with National Geographic Magazine) 67%
National Geographic Channel International 75%
National Geographic Wild (joint venture with National Geographic Magazine)
Fox International Channels, domestic cable channels offering different formats of Fox programming in over thirty countries worldwide.
Fox Life HD
National Geographic Channel
National Geographic Channel HD
National Geographic Wild
National Geographic Adventure
National Geographic Music
National Geographic Junior
Real Estate TV
Fox Toma 1 - Spanish language television production.
Fox Telecolombia - Spanish language television production. (51%)
Utarget.Fox - European and Latin American online ad company, plus now handles TV ad sales.
Fox Latin American Channels - channels available in over 17 countries in Latin America
Canal Fox Life
Canal Fox Reality
Canal Fox Sports
Canal National Geographic Channel
Fox One-Stop Media - advertising sales for company owned and third party channels in Latin America
LAPTV (22.5%) (Latin American Pay Television) operates 8 cable movie channels throughout South America excluding Brazil.
Cine Canal Classics
The Film Zone
Movie City HD
Movie City On Demand
Telecine(12.5%) operates 5 cable movie channels in Brazil.
Premier Media Group (50%)
Fox Sports One
Fox Sports Two
Fox Sports Three
FUEL TV (Australia)
How To Channel
Premium Movie Partnership (20%) - movie channels, a joint venture between 20th Century Fox, Sony Universal Pictures, Paramount and Liberty Media
Showtime 1 & 2
Hathway Cable & Datacom (22.2%), India's 2nd largest cable network through 7 cities including Bangalore, Chennai, Delhi, Mumbai & Pune
Total TV (20%), Pay TV platform with JV partner KOO's Group majority owner (80%). News Corp also has a 20% interest in the KOO's Group directly
Fox Interactive Media
Foxsports.com - website with sports news, scores, statistics, video and fantasy sports
MySpace - Social networking website, general interest website acquired through purchase from Intermix Media
MySpace TV, a video site which will host amateur videos, contents from net and studios that competes with Google's YouTube
Photobucket - Photo sharing website.
Beliefnet - Largest online faith and spirituality network.
Hulu (27%) - online video streaming site in partnership with NBC Universal and The Walt Disney Company.
Flektor - provides Web-based tools for photo and video editing and mashups.
IGN Entertainment - Internet entertainment portal (Includes the sites IGN, GameSpy, Rotten Tomatoes, TeamXbox, and Askmen.com)
Slingshot Labs - web development incubator (Includes the sites DailyFill).
Strategic Data Corp - interactive advertising company which develops technology to deliver targeted internet advertising.
WhatIfSports.com - sports simulation and prediction website. Also provides fantasy-style sports games to play.
Indya.com - 'India's no. 1 Entertainment Portal'
ROO Group Inc (5% increasing to 10% with performance targets)
News Digital Media
News.com.au - Australian-oriented news website
CareerOne.com.au (50%) - recruitment advertisement website in partnership with Monster Worldwide.
Netus (75%) - investment co. in online properties.
REA Group (60.7%)
Casa.it (69.4%), Sky Italia also holds a 30.6% share
atHome group, operator of leading realestate websites in Luxembourg, France, Belgium and Germany.
Altowin (51%),provider of office management tools for realestate agents in Belgium.
Propertyfinder.com (50%), News International holds the remaining 50%
Sherlock Publications, owner of hotproperty.co.uk portal and magazine titles 'Hot Property', 'Renting' and 'Overseas'
ukpropertyshop.co.uk, most comprehensive UK estate agent directory.
PropertyLook, property websites in Australia and New Zealand.
HomeSite.com.au, home renovation and improvement website.
Square Foot Limited, Hong Kong's largest English Language property magazine and website
Primedia - Holding co. of Inside DB, a Hong Kong lifestyle magazine.
TadpoleNet Media (10%) Hosts of ArmySailor.com
DVD Unlimited - leading online DVD subscription service (ownership through stake in Sky Network Television).
Fox Networks - one of the largest international ad networks.Other assets
NDS - Conditional access technology and personal digital video recorders (PVRs) (49%)
ITE, publisher of Playstation and Mobile games, and interactive television
Orbis Technology, supplier of online gambling software
Broadsystem Ltd (UK) - Telephony provider for media companies, bought in 1991
Broadsystem Australia (Australia)
Broadsystem Ventures (UK) - provider of cheap-rate telephone calls, particularly for customers of Sky Television. Bought outright in 1999.
Jamba! - Mobile Entertainment/Mobile Handsets Personalisation/Games.
News Outdoor Group - Largest outdoor advertising company in Eastern Europe with over 70,000 ads including billboards and bus shelters, operating in Bulgaria, Czech Republic, Hungary, India, Israel, Poland, Romania, Russia (96 cities), Turkey & Ukraine.
Maximedia Israel (67%)
Mosgorreklama (50%) - Russia sign and marketing material manufacturer
Kamera Acikhava Reklamclik (?) - leading outdoor advertising company in Turkey
Australian Associated Press (45%) - real time news service.
Stats Inc (50%) - worlds leading provider of sporting information and statistical analysis (a JV with Associated Press)
Fox Sports Grill (50%) - Upscale sports bar and restaurant with 7 locations - Scottsdale, Arizona; Irvine, California; Seattle, Washington; Plano, Texas; Houston, Texas; San Diego, California; and Atlanta, Georgia.
Fox Sports Skybox (70%) - Sports fan's Bar & Grill at Staples Center and 6 airport restaurants.
News America Marketing (US) - (100%) - nation’s leading marketing services company, products include a portfolio of in-store, home-delivered and online media under the SmartSource brand.
Rotana (9%) - Largest Arab entertainment company owned by Saudi Prince Al-Waleed bin Talal7 Oct 2008
Australia has stunned world markets by slashing interest rates a full percentage poin
Roger Campbell Corbett AO (born 1942) is an Australian businessman. From January 1999 to September 2006, Corbett served as CEO of Woolworths Limited, a large retailing conglomerate. He is now a director of Wal-Mart, the Federal Reserve Bank of Australia
and Fairfax Media. He became chairman of Fairfax at the company's 2009 Annual General Meeting.
Wal-Mart looks to AustraliaNovember 20, 2006
WOOLWORTHS has denied any likely conflict of interest over the role of its recently departed chief executive, Roger Corbett, after his surprise appointment as a director of Wal-Mart, the world's biggest retailer.
News of his latest job came just seven weeks after the 64-year-old cleared his desk at the supermarket chain, although he retains a $600,000-a-year, five-year consultancy with Australia's largest retailing company.
Woolworths chairman James Strong said Mr Corbett's success at the company had earned him the respect of the global retailing community and it was this that led to Wal-Mart recruiting him as a non-executive director.
The appointment was "personal and independent" and given that Wal-Mart does not compete with Woolworths in any market meant there was no conflict of interest, Mr Strong said in a statement.
"It will not affect his consultancy arrangements with Woolworths, other than to enhance Roger's ability to continue to add value," said Mr Strong. "Roger's business acumen and personal integrity have always been highly valued by Woolworths and he will now have the opportunity to share his capabilities with another great retailing organisation."
Wal-Mart, which employs 1.8 million people and has 6600 stores around the globe, has enjoyed an informal relationship with Woolworths going back nearly 20 years.
Its announcement over the weekend that Mr Corbett had been appointed to the Wal-Mart board took Woolworths by surprise as it had not expected the news to be released until today.He will sit on Wal-Mart's strategic planning and finance committee with five other directors. He joins fellow Australian and former CEO of Coca-Cola, Douglas Daft, as one of Wal-Mart's 14 directors. Wal-Mart did not disclose how much it would be paying Mr Corbett or how much time he would have to commit.
"Roger has a wealth of experience in international retail operations including international sourcing," said Rob Walton, chairman of Wal-Mart's board "We've admired Roger's leadership for many years. He was instrumental in building Woolworths into the dynamic and successful enterprise it is today in Australia."
Mr Corbett said it was a privilege to serve on the board of the company "that sets the standard for retail excellence in the world".
He added: "Wal-Mart touches the lives of millions of people every day, improving their standard of living in so many ways."
Former Woolworths executive chairman Paul Simon cultivated ties with Wal-Mart founder Sam Walton and in 1990 brought in former Wal-Mart president Jack Shewmaker as a consultant.Delta Goodrem Rings The NYSE Opening BellSinger Delta Goodrem attends the opening bell at New York Stock Exchange on October 14, 2008 in New York City.Senior Vice President of the Global Corporate Client Group, for the New York Stock Exchange, Thomas Veit (L) and singer Delta Goodrem (R) ring the opening bell at New York Stock Exchange on October 14, 2008 in New York City. 14th October 2008Icelandic stock market plunges a massive 76 per cent as the rest of the world enjoys huge gains
The Icelandic Stock Market plunged a massive 76 per cent today in stark contrast to markets elsewhere around the world.
As shares in the UK, Asia and Europe soared after record gains on Wall Street last night, Iceland's blue chip index crashed through the floor.
It is the market's first day of trading since last Wednesday and the fallout from the almost total collapse of its financial sector came home to roost immediately.
Despite trading remaining suspended in six banks, there were huge losses which will take the Icelandic economy even closer to collapse.
Frozen credit markets have brought the country to its knees and the Government is battling to keep the banking system afloat.
The state has been forced to takeover three of the country's largest banks in recent weeks, freezing accounts held by individuals, charities and public sector bodies in Britain.
Individual investors have had their savings guaranteed by the Treasury, but the councils appear certain to lose their investments. Charities are believed to have lost £120 million.
The Bank of England is loaning £100million to the British arm of collapsed Icelandic bank Landsbanki to help repay British savers.
Talks are also under way between Treasury officials and the Icelandic government to try and get back the money lost by town halls.
Over the past decade, Iceland's financial sector bloomed to bring unprecedented prosperity to its 300,000 population.
It won favour with foreign savers and investors because of its attractive interest rates but the global financial crisis has left the entire country foundering.
Beat Siegenthaler, chief strategist emerging markets at TD Securities in London, said today: 'It is clear that Iceland will need substantial foreign aid in order to prevent further major damage to the economy.'
Today's shares plunge came as it emerged city middlemen may have profited from the loss of British taxpayers' money in the banking crash.