Seven West Media's takeover offer for Prime Media is unlikely to get approval from enough shareholders at a general meeting today.
Billionaire Bruce Gordon and regional newspaper player Antony Catalano, who between them own 26.16% of Prime, have indicated they will vote against the takeover.
That means Seven West Media can't get to three-quarters of the shareholding needed to force the acquisition of the rest of the shares.
"If the shares in respect of which Bruce Gordon and Antony Catalano have voting power were voted against the scheme, the scheme would not be approved," Prime Media directors say in a note to the ASX.
"Prime is consulting with Seven."
James Warburton, the new CEO of Seven West Media, wants Prime so he can create a premium broadcast, video and news network with potential to reach more than 90% of Australia’s population each month.
Consumer watchdog the ACCC, after considering feedback from advertisers and advertising agencies, yesterday announced it won't oppose Seven West Media’s acquisition of Prime.
The ACCC: “Feedback from advertisers and advertising agencies suggests that Prime’s television and Seven West Media’s newspapers don’t compete closely for advertising revenue, and most advertisers have alternative ways of reaching their target audiences.”
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