Nine and Southern Cross Media Group have played down speculation that the two are planning a merger, with the latter noting it “has not received or made any merger proposal”.
The statements follow an article in The Australian suggesting the companies have held direct negotiations for a two-step deal designed to bypass the reach rule.
The story said Nine would be likely to buy Southern Cross' metropolitan radio assets and would park its remaining regional assets in a holding entity until changes were made to the reach rule.
Communications Minister Mitch Fifield has made several assertions that he would be looking at media reform as part of his new role, with the reach rule as a priority.
However, both Nine and Southern Cross have moved to quash speculation.
“As outlined by the company's chairman, Peter Bush, in his address to shareholders at the company's AGM on 29 October 2015, the board, management and the company’s advisers have been reviewing the company’s strategic options,” Southern Cross announced on the ASX.
“However the company has not received or made any merger proposal.”
Nine also addressed the market noting that should an agreement be reached, it would make an appropriate announcement in accordance with disclosure obligation.
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