Southern Cross set to rebuff Catalano

afr.com:

Southern Cross Austereo is set to say thanks but no thanks to Antony Catalano for his proposal to acquire the radio and television broadcaster, Street Talk understands.

Southern Cross Austereo CEO John Kelly took over in July. SCA

It’s understood that SCA has met and taken a view his proposal to blend regional print assets in exchange for shares is not aligned with their strategy around digital and audio. Rather, they’re more focused on investing in digital and audio assets.

Catalano, who chairs regional publishing group Australian Community Media and backed by billionaire businessman Alex Waislitz, had made an approach to the Southern Cross board, outlining a preliminary plan to merge the businesses and create a regional media giant earlier this month.

This operated as a counterproposal to a takeover offer from ARN Media and Anchorage Capital.

Under the plan, ACM would sell a range of publications including The Newcastle Herald, Illawarra Mercury and The Canberra Times to Southern Cross Media in exchange for a major stake in the ASX-listed group.

Southern Cross would own 14 of ACM’s daily newspapers and 52 of his non-daily publications. The Land and ACM’s agriculture assets, as well as its real estate play View, were not included.

Southern Cross Austereo owns 99 radio stations, including the Triple M and Hit brands, and 96 regional free-to-air TV signals. It has spent weeks grappling with a complex offer from ARN and Anchorage to buy them out. Interest from Catalano had added more complexity to ARN/Anchorage’s acquisition attempts.

SCA told investors earlier this month it would consider ACM’s proposal.