Murdoch dumps Consolidated Media bid plans

Lachlan Murdoch, eldest son of News Corp Chairman Rupert Murdoch, scrapped plans to buy Consolidated Media Holdings Ltd for A$3.2 billion ($2.9 billion).

The joint proposal with Consolidated Media Chairman James Packer was withdrawn due to a change in "overall transaction terms", Sydney-based Illyria Pty, Lachlan Murdoch's closely held investment arm, announced yesterday.

Consolidated Media, whose holdings include Australia's largest pay-TV operator and biggest magazine publisher, would have given 36-year-old Lachlan Murdoch his first media executive role since quitting as News Corp's deputy chief operating officer in July 2005.

Lachlan Murdoch agreed in January to pay A$4.06 in cash and 0.1116 of a share in Seek Ltd, Australia's largest Internet jobs site, for Consolidated Media.

The offer was subject to access to financial records, a board recommendation and financing.

The deal was thrown into jeopardy in March after Lachlan Murdoch's partner San Francisco-based SPO Partners & Co pulled out.

Lachlan Murdoch later entered into talks with Providence Equity Partners Inc to fund his part of the takeover, the Sydney Morning Herald newspaper reported on Friday.

Consolidated Media's holdings include a 25 percent stake in Australian pay television operator Foxtel; 50 percent of Premier Media Group, which owns the Fox Sports channels; and a 25 percent stake in PBL Media, which owns the second-ranked Nine television network and magazine publisher Australian Consolidated Press.

For Packer, who owns 38 percent of the company, the transaction would have been his third reorganization of the business empire inherited from his father, Kerry, more than two years ago.

Packer and Lachlan Murdoch previously teamed in One.Tel Ltd, an Australian mobile phone company that filed for bankruptcy in 2001, resulting in a A$1 billion loss for the media scions.

Agencies

(China Daily 04/08/2008 page16)