SCA has rejected a pitch from Anthony Catalano's ACM to combine its regional newspaper titles with the broadcaster.
The board of directors at SCA determined, with the assistance of its advisers, that the proposal "would not be in the best interest" of the company and its shareholders.
"One of the reasons for this is that the ACM proposal involves the acquisition by SCA of regional print and digital assets which is not consistent with SCA’s strategy," the board told the ASX.
"All About Audio is a key driver of SCA’s strategy, differentiation and growth pathway. SCA’s operating strategies and investments are focused on building Australia’s leading audio company to deliver compelling returns for our investors."
Entrepreneur Catalano wanted to back-in his newspapers from regional media player ACM and create a large media group.
This was more merger than takeover with a vision to create a powerhouse combining broadcast, audio, print and online.
SCA’s assets, including 99 radio stations under the Triple M and Hit network brands, reaching 8.89 million Australians each week, would be combined with ACM’s 14 daily newspapers and 52 non-daily titles.
The broadcaster also has 96 free-to-air TV signals across regional Australia and represents or has a joint venture with 39 TV stations, reaching 3.36 million people a week.
SCA and its advisers are continuing to evaluate a takeover proposal from competitor ARN Media, backed by private equity group Anchorage Capital Partners.
"SCA recommends shareholders take no action in relation to either of these indicative proposals," the board says.
ARN, the owner of KIIS and Pure Gold radio brands, has made a complicated takeover offer.
Shareholders are being offered 94 cents per share, valuing SCA at $330 million, and made up of 0.753 of an ARN share and 29.6 cents cash for each SCA share.
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