{alltv} Shareholders quiz Murdoch on political gifts

Shop Sears.com for faraway Family/Friends with International Shipping available to over 90 countries

NEW YORK (Reuters) – News Corp shareholders on Friday quizzed Chief Executive Rupert Murdoch and his fellow directors over the process by which the company makes donations to political organizations.

The directors faced several questions at the company's annual general meeting from individual shareholders and shareholder activists about a recent decision to donate $1 million each to the Republican Governors Association and U.S. Chamber of Commerce. The gifts are being made in the run-up to U.S. congressional mid-term elections on Nov 2.

Murdoch said he and the board believed the donation was made in the "best interest of the company."

"We believe it is in the interest of the company and the country that there be a fair amount of change in Washington, D.C.," he said.

Shareholder activist groups including The Nathan Cummings Foundation have criticized the recent donations. In a letter to the board on October 11 the foundation said the decision was "troubling".

"The issue of corporate political spending is particularly sensitive for media companies given the public's expectation that they provide objective news coverage," the letter said

Murdoch also said the decision had "nothing to do with the editorial or journalism of the company." While he accepted the size of the gifts was "unusual," he said it was unlikely to be repeated.

Rod Eddington, who is News Corp's lead director, said he understood the concerns about a need for transparency and that the decision to make the donations only came after the board took advice from management.

News Corp's influence in politics in the United States and the United Kingdom through its media outlets has often been a controversial issue with many of Murdoch's adversaries.

His bid to buy back the 61 percent of UK satellite TV provider BSkyB News Corp doesn't already own is currently being challenged by rival media companies. They are calling on the British government to review the bid because they said it would give News Corp too much dominance in the UK media landscape.

The UK tabloid Daily Mirror reported on Friday that Murdoch had met with British Prime Minister David Cameron for 45 minutes just 24 hours after the Conservative Party leader took office in May.

Murdoch said he had met Cameron a "few weeks after" the election and that the meeting had lasted "around five minutes" during which Cameron had thanked him for his support. The Mirror's owners are among those asking for a challenge to Murdoch's full ownership of BSkyB.

Murdoch also told shareholders that even after turning 80 next March he has no plans to retire unless his health falters or if the board asks him to step down.

The News Corp board was reelected by more than 89 percent of the votes cast.