Catalano and Waislitz plot takeover of Southern Cross Austereo

afr.com:

Antony Catalano and his billionaire backer, Alex Waislitz, are attempting to stop ARN Media’s purchase of Southern Cross Austereo, hoping instead to merge the television and radio group with their own publishing operations.

Four media sources familiar with talks, who were not authorised to speak publicly about the matter, said Mr Catalano and Mr Waislitz had canvassed a potential merger of Southern Cross and Australian Community Media. If successful, it would create a regional media giant.

Two sources said Mr Catalano, who owns Australian Community Media – the publisher of The Land, The Newcastle Herald and The Canberra Times – and Waislitz are quietly growing a small stake in Southern Cross in an attempt to block the bid currently on the table.

Rich listers Alex Waislitz and Antony Catalano.  

Mr Catalano has privately told investors that a tie-up between ACM and Southern Cross would provide up to $35 million in cost synergies and another $35 million in earnings before interest, taxation, depreciation and amortisation growth. He has also discussed the idea with Southern Cross chief executive John Kelly over the past week.

Mr Catalano could not be reached because he was on a boat.

Southern Cross declined to comment.

This is not the first time Mr Catalano and Mr Waislitz have attempted to thwart a regional media deal. In 2018, they acquired a 14.6 per cent stake in Prime Media in an attempt to block a $60 million merger between the regional broadcaster and Seven West Media. The attempt succeeded and Seven did not buy Prime until late 2021.

Mr Catalano, a former chief executive of Domain, bought ACM from Nine Entertainment, the owner of The Australian Financial Review, in 2018 for $115 million. The acquisition, backed by