The Cat’s ACM take a swipe at Southern Cross, makes approach
It was only a matter of time. Antony Catalano has taken his first official step towards spoiling ASX-listed ARN Media’s plans to acquire rival Southern Cross Austereo, Street Talk can reveal.
Antony ‘The Cat’ Catalano is looking to spoil a proposed tie-up between radio giants Southern Cross Austereo and ARN. AFR
It is understood Catalano, who chairs regional publishing group Australian Community Media, has made an approach to the Southern Cross board, outlining a preliminary plan to merge the businesses.
While the details are unclear, sources close to Southern Cross said the letter was sent by Catalano, and his business partner in ACM, Alex Waislitz, on Thursday. The missive is believed to propose selling part of ACM into Southern Cross in return for scrip in the target.
As this column first reported, ARN Media chairman Hamish McLennan and CEO Ciaran Davis executed on a bold strategy in the middle of October to partner with private equity firm Anchorage Capital Partners and fundamentally reshape Australia’s FM radio landscape.
ARN, the owner of the KIIS and Pure Gold radio network brands, spent months plotting its bid with Anchorage after buying up 14.8 per cent of Southern Cross, the owner of the Hit and Triple M networks. It has offered 0.753 ARN shares for each Southern Cross share, plus 29.6¢ in cash and 12.7¢ in franking credits.
ARN’s proposal involves shuffling the radio networks between ARN and Anchorage. ARN would take KIIS and Triple M and 88 regional radio stations. Anchorage would own the Pure Gold and Hit brands, as well as 35 regional stations and a regional TV network. They would co-own a separate digital streaming business.
This week’s much-anticipated move by ACM comes as Southern Cross executives have
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