Southern Cross trades Grant Samuel for UBS amid takeover
The starting gun has fired on ARN Media’s $225 million takeover bid for rival radio and television broadcaster Southern Cross Austereo – but Street Talk understands the target is taking advice from a new source.
Southern Cross has turned to UBS, after being advised by Grant Samuel, as pressure mounts on the company’s board to engage with ARN and its private equity partner, Anchorage Capital, and negotiate a tie-up.
Southern Cross Austereo chairman Rob Murray. Brook Mitchell
The trade happened soon after Southern Crosses’ annual meeting on Friday where only one person – activist shareholder Stephen Mayne – spoke out against the deal. The radio network’s largest shareholders, Allan Gray and Ubique Asset Management, have both come out in support.
It’s unclear whether Grant Samuel is still anywhere on the SCA ticket. The advisory firm declined to comment on Sunday. UBS did not respond.
SCA hired Grant Samuel as its financial adviser last year after receiving unsolicited approaches from several parties indicating interest in acquiring its regional television assets. The board reaffirmed its appointment following the ARN bid. Corrs Chambers Westgarth is its legal adviser.
Street Talk understands the sudden adviser swap is viewed unfavourably by the ARN camp – led by Jefferies’ Michael Stock and Gilbert & Tobin’s Peter Cook – who had a full briefing with Grant Samuels last Monday and want to get discussions under way.
Sources accused Southern Cross of slow-walking the deal by highlighting its intricacy, described by SCA chairman Rob Murray as “complex and highly conditional” in an address to shareholders on Friday. ARN believes tabling an Australian Communications and Media Authority solution upfront has removed potential media
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