Prime Media in crunch talks with Seven West Media over takeover
Prime consults with prospective buyer Seven West Media after key shareholders reject a $64m takeover.
Regional television broadcaster Prime Media is in crunch talks with its prospective buyer Seven West Media after its two major shareholders, Bruce Gordon and Antony Catalano, rejected the $64m takeover.
Prime said media mogul and WIN Corporation chairman Mr Gordon has voting power of 11.59 per cent in Prime, while Mr Catalano has a 14.57 per cent stake, which collectively gives them a 26.16 per cent blocking stake to Seven's bid.
Seven's takeover offer needs 75 per cent Prime shareholder approval to get over the line.
Prime said in a brief statement on Tuesday morning that if the businessmen voted against the scheme of arrangement it “would not be approved”.
"In accordance with its obligations under the scheme implementation deed, Prime is consulting with Seven in relation to the scheme...," Prime said.
READ MORE: Gordon, Catalano block Seven West bid for Prime
In a statement released to The Australian on Monday, Mr Gordon, said: “We will not be supporting the scheme of arrangement as we believe that the proposal isn’t good value for current shareholders.”
Sources close to WIN have told The Australian its rejection has come simply because the company believes the Seven offer is a “lousy” deal, despite Seven sweetening its deal with a proposed 3c a share dividend.
Mr Gordon has also blamed “out of date” media rules for the fact there was only one offer on the table. He also issued a statement that appeared to indicate he would be interested in buying Prime if he could.
“There is only one offer right now for Prime because other potential buyers are constrained by out of date media ownership legislation.
“If the minister for communications was serious about the future of regional media companies, he would hasten the removal of the ‘one to a market’ and ‘voices’ rules in regional Australia and let Prime media have more than one potential buyer ... surely that’s more in the interests of Prime’s shareholders.”
Prime shareholders are scheduled to vote on Seven's offer next week.
A Seven spokesman declined to comment.
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