Beyond bids still in the picture

THE bidding process for production house Beyond International may not be over, despite the company's announcement yesterday that it had accepted a $74.6 million takeover offer by Kuala Lumpur-based private equity firm Navis Capital Partners.

THE bidding process for production house Beyond International may not be over, despite the company's announcement yesterday that it had accepted a $74.6 million takeover offer by Kuala Lumpur-based private equity firm Navis Capital Partners.

Other parties involved in takeover discussions including Bill Ireland's Mariner Financial, which already owns 11 per cent of Beyond and had launched a now-surpassed $1.15-a-share bid last Friday are reportedly working out whether to try to beat Navis's bid for the group.

Mariner's chief operating officer, Alexander Sundich, would only say: "As an 11 per cent shareholder, we have a vital interest in the outcome of the bidding process, so we're evaluating what our response is in relation to this offer."

Beyond chief executive Mikael Borglund told The Australian that competing parties had been kept in the loop about the status of bidding prior to a directors' meeting of the production house on Monday night.

"My understanding is that there was dialogue between our advisers, and Mariner and Navis, right up to the board meeting," Mr Borglund said.

It is understood Mariner was given the option by email to improve on Mariner's bid, but declined at this point.

Mr Borglund will continue as CEO of Beyond if the offer succeeds and has "entered into separate arrangements" with Navis to facilitate the proposal.

Beyond's chairman, Ian Ingram, said rivals to the Navis proposal had been "less attractive" or "not sufficiently certain to enable the board to properly assess them".

The Navis bid has been recommended in the absence of a higher offer and pending an independent expert's report about whether it is in the best interests of Beyond shareholders. It is now likely to be put to a shareholders meeting in November.

Navis has been active in Australia in recent years, buying ice cream retailer Wendy's and the Australian franchise of car rental company Europcar.

It is understood Navis has plans to take advantage of Beyond's international contacts, particularly in the US market, given the production house already makes shows, such as the popular Mythbusters (which Beyond makes for the US Discovery Channel).

Beyond has made lifestyle series What's Good for You for the Nine Network, and South Side Story involving Russell Crowe for the ABC. It has also been involved in a number of prominent Australian films such as Lantana, but in recent years has scaled back its film production and distribution activities.

However, Mr Borglund has not ruled out a return to feature films, in light of proposed new government incentives that would give a tax rebate of up to 40 per cent on film production.