Shareholders Back News Corp's A$1.94 Billion Consolidated Media Takeover

By Gavin Lower

MELBOURNE--Consolidated Media Holdings Ltd. (CMJ.AU) said Wednesday that shareholders approved News Corp.'s (NWS) 1.94 billion Australian dollar (US$2.01 billion) takeover of the company.

The deal will see News Corp., the owner of The Wall Street Journal, increase its footprint in Australia's pay television industry, doubling its share of subscription television company Foxtel to 50%, and full ownership of sports channel Fox Sports.

Australian telecommunications giant Telstra Corp. (TLS.AU) owns the remaining 50% of Foxtel.

The shareholder vote wasn't in doubt given Consolidated Media's two largest shareholders - James Packer's Consolidated Press Holdings Ltd. with 50.1% of the company and Kerry Stokes' Seven Group Holdings Ltd. (SVW.AU) with 25% - previously saying they would support the deal.

News Corp. made a A$3.45-a-share bid for Consolidated Media in September, which was lower than its original non-binding proposal of A$3.50 in June.

While Consolidated Press Holdings was an early supporter of the takeover, Seven Group only came on board early this month when the Australian Competition & Consumer Commission, or ACCC, rejected its own proposal to take over Consolidated Media.

The ACCC said it was concerned about the impact on competition in the free-to-air television sector if Seven Group, which owns 33% of media company Seven West Media Ltd. (SWM.AU), were allowed to buy Consolidated Media. The regulator's decision sent a message that it would be uncomfortable about deals involving pay television owners and free-to-air broadcasters.

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