Southern Cross Media Bids To Take Over Austereo
January 31, 2011 at 2:40 PM (PT)
A bid by SOUTHERN CROSS MEDIA to buy Australian radio rival AUSTEREO for A$741 million (A$2.05/share) got a cold reception from SOUTHERN CROSS investors MONDAY, with SOUTHERN CROSS shares off 11.6% from FRIDAY's closing price.
SOUTHERN CROSS is offering AUSTEREO shareholders their choice of A$2.05 cash (including a nickel dividend already scheduled by AUSTEREO) or 0.95 shares of SOUTHERN CROSS for each AUSTEREO share tendered. The bid rises to A$2.15 when SOUTHERN CROSS reaches the 90% share mark. AUSTEREO has recommended that shareholders accept the offer, and AUSTEREO shares rose 10.6% on MONDAY to A$2.09 while 52.5% AUSTEREO owner VILLAGE ROADSHOW, which said it would take the offer in cash, rose as well.