by James Whitman

Back in 1976 after he bought the New York Post, a confounded Rupert Murdoch asked the chairman of Bloomingdales why the upscale department store didn't advertise in his paper. According to the story, now the stuff of media-industry legend, the executive replied, "Rupert, your readers are my shoplifters."

More than three decades later, the Australian-born press magnate is ready for vindication. Starting next month, he will wage a full-on assault against The New York Times by launching a New York edition of the The Wall Street Journal, the business news bible he bought in 2007 for US$5-billion.

Even before its debut, the full-colour 12-page section -- which will cover local news, culture, politics, sports and crime--has secured advertising commitments from Bloomingdales and other high-end New York advertisers.