NEWS Corporation, parent company of The Times, is hopeful that it will largely see off a rebellion of shareholders who are protesting at the media group’s decision to extend a poison-pill defence against takeover.

It is understood that News Corp believes it has the support of John Malone, the second largest voting shareholder, which will enable it to overcome the rebels’ attempt to vote against or abstain on the reappointment of four directors, in retaliation for News Corp’s extending the poison-pill defence without putting it to a shareholder vote.

With Rupert Murdoch, the company’s chairman and chief executive, controlling 29.5 per cent of the voting shares, and John Malone’s Liberty Media holding 18 per cent, those supporting the reappointment of the directors already have close to 50 per cent of the vote.

However, it will be harder to win support for a separate resolution that calls for an increase in the total amount that may be paid to the company’s non-executive directors, from $1.4 million (£775,000) to $3.5 million. No director, including Mr Murdoch, can vote for this proposal.

Institutional Shareholder Services (ISS), the US corporate governance watchdog, had recommended that investors abstain on the reappointment of the four directors, who include Rod Eddington, the former British Airways chief executive, and Peter Chernin, News Corp’s president and chief operating officer.

ISS also wants investors to vote against the pay increase for non-executives, “in the light of the actions taken [by non-executives] to overturn the poison-pill policy”.

The rebel investors are also challenging the poison-pill decision in a Delaware court.

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