ARN Media’s proposed acquisition of Southern Cross Austereo has been dealt a blow, with the Takeovers Panel ruling it improperly acquired a stake in the television and radio broadcaster from fund manager Allan Gray.

ARN bought 14.8 per cent of Southern Cross in June, before launching a bid to acquire its rival alongside private equity player Anchorage Capital last month. But Keybridge Capital’s Nick Bolton, a Southern Cross shareholder, complained to the Takeovers Panel that the June stake was acquired in breach of corporations rules.