Indian and International Media News

Independent News & Media Plc (INM), the Irish media group, and United States investment vehicle Carlyle Group have agreed to buy APN News & Media Limited, Australia's fourth-largest media company.

Independent News & Media Plc., headed by 70-year old Sir Anthony O'Reilly, will reduce its stake in APN to 35%, freeing up resources to grow its business in other markets.

Sir Anthony O'Reilly, the Irish billionaire, revealed on Monday the Australian dollar 2.8-billion (US $ 2.17 billion; euro 1.67 billion) takeover bid for APN News & Media, Australia's fourth largest media group.

The deal, which values APN at A $ 3.8 billion (US $ 2.94 billion; euro 2.26 billion) -- including debt -- is the media sector's first for 2007.

Analysts expect 2007 to see the biggest shakeup of the Australian media landscape in over 20 years as Canberra prepares to relax ownership rules.

If shareholders approve the proposal, Independent will cut its stake in the Australian media group to around 35% from the 41.6% stake at present. Fellow consortium member Providence Equity will take a 37.5% stake and Carlyle Group, a 27.5% stake.

Independent and Providence Equity first approached APN -- which owns radio stations, outdoor advertising sites and newspapers in Australia and New Zealand, including the New Zealand Herald -- with the offer of Australian $ 6.02 (US $ 4.66; euro 3.58) a share in 2006.

However, they had abandoned that bid in November 2006 after failing to meet a self-imposed deadline, before coming back with new partner, Carlyle, in January 2007.

An independent committee of the board of APN has recommended that shareholders vote in favour of the increased $ 6.10 offer in the absence of a superior proposal.

Sub-committee chairman Ted Harris said the recommendation was supported by the full APN board and that all Independent directors intended to vote in favour of the offer in respect of APN shares they owned or controlled.

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