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Investors protest News Corp's $2m political donations

News Corp's recent donations - $1m to the US Chambers of Commerce and $1m to the Republican Governor

The UK fund manager F&C Asset Management, which manages the shares of News Corporation, protested against the political donations made by the media conglomerate saying they are not in the interest of the shareholders.

F&C is planning to vote against the re-election of Sir Rod Eddington as chairman of News Corp's audit board. They reportedly believe that the committee is overseeing company's donations.

News Corp's recent donations - $1m to the US Chambers of Commerce in September and $1m to the Republican Governors Association in August - ahead of the polls in key Congressional elections on 2 November are understood to have sparked the protest.

News Corp has been maintaining that it donates to groups that have "a pro-business agenda, and support our priorities at this most critical time for our economy".

However, Karina Litvack, head of governance and sustainable development at F&C, said: "We are concerned to see the company deploy shareholder funds for activities that are best left to those individuals whose views they reflect and are not obviously a matter for the company."

She added that there is no evidence that the political contributions made by the company are in the interest of shareholders.