Takeover target Consolidated Media Holdings will not be bought out after the takeover deal could not be resurrected despite much negotiation.
Murdoch’s company Illyria had withdrawn its non-binding indicative proposal to acquire 100% of CMH.
In a letter to CMH, it advised that as of today it is not “in a position to proceed with the Indicative Proposal due to material changes in the overall transaction terms.”
Shares in Consolidated Media Holdings (ASX:CMJ) emerged from a trading halt unscathed, during which the details of the multi-billion dollar deal by a joint consortium were being mulled over.
The buyout, worth $3.3 billion, stalled last month after Murdoch’s company Illyria lost equity financing arrangements with SPO Partners & Co of San Francisco.
The deal has since been revived after a new financier came to the fore, US. Private equity firm Providence Equity Partners.
The Age newspaper reported the two were in negotiations over the price of the deal throughout the weekend.
Murdoch, who quit as deputy chief operating officer at News in July 2005, and Packer was offering $4.80 a share in cash and shares in Seek (27% of which is owned by CMH).
Under the deal, Illyria (Lachlan Murdoch) and its equity partners would create a 50-50 joint venture with Cons Media’s major shareholder Consolidated Press Holdings Ltd (Conspress) as part of a consortium.
Consolidated Media Holdings was spun off from PBL in November, which split into CMH and a gaming related company called Crown, trading under ASX:CWN.
CMH holds investments in a diversified portfolio of market leading media assets including PBL Media (50%), Foxtel (25%), Fox Sports (50%), Seek (27.1%) and Ticketek (100%).
Consolidated Media shares last traded at $4.07.
