Independent News makes $2.2 bln offer for APN

Irish media magnate Tony O'Reilly's Independent News and Media Plc teamed up with two buyout firms to launch a renewed takeover for APN News and Media, valuing the Australasian group at A$2.8 billion ($2.2 billion).

Independent, which has a 40 per cent stake in APN, joined private equity heavyweights Carlyle Group and Providence Equity Partners Inc. to offer A$6.05 a share for APN, just above a previous offer, but below the stock's recent highs.

Shares in APN, which owns New Zealand's largest paper and a string of radio stations, opened up 0.8 per cent at A$6.20 yesterday, suggesting some shareholders expect a higher offer.

Analysts said the bid had a mixed chance of success as it was pitched just below APN's current share price, but played down the likelihood of a rival bid.

"It is unlikely there will be a counterbid from another party given APN has control of it already. It does not seem as much a premium as some of the other (media) deals," Shaw Stockbroking analyst Greg Fraser said.

Including APN's debt and convertible notes, the offer is worth about A$3.8 billion, a source familiar with the deal and analysts said. Previous talks between the two companies ended in November, after Independent News made a joint approach with Providence amid a shake-out of Australia's television, radio and newspaper market ahead of the introduction of new media ownership laws this year.

The details of APN's previous approach were never released but sources have said the earlier bid was valued at A$6.02 per share.

Dublin-based Independent, which publishes 175 newspaper and magazine titles across the globe including Britain's Independent, indicated last year the door was open for another offer.

Independent chairman Mr O'Reilly, a former international rugby player, is Ireland's best-known businessman and a high-profile global investor.

The former HJ Heinz chairman has worked with Providence before, partnering the private equity firm and international financier George Soros in the three billion euro buyout of Irish phone company Eircom in 2001.