Business Services Industry

Bigger Fairfax sheds takeover allure.

Australasian Business Intelligence, December, 2006

Byline: Glenda Korporaal

Dec 07, 2006 (The Australian - ABIX via COMTEX) -- Australian newspaper groups John Fairfax Holdings and Rural Press will form a new entity worth $A9bn. The merger is seen as a disincentive for a range of candidates who may have been planning an acquisition of Fairfax in order to break up its assets, and as a consequence its share price has fallen from $A5.21 on 6 December 2006 to close at $A4.92 on the following day. Rural Press also closed $A0.01 lower at $A13.40 on 7 December, but had risen strongly when the merger was announced first. The transaction is still facing scrutiny by the Australian Competition & Consumer Commission, although the partners are confident they have little in the way of common geographical market segments....

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