Kerry Stokes'Seven has been meeting with shareholders sinceplans for the $64 million takeover deal were announced,but there have been growing concerns among executives at the media organisations that Australian Community Media executive chairman Antony Catalano might move to block the deal.
Prime shareholders get 0.4582 shares in Seven for each share they hold under the current terms,but independent expert Lonergan Edwards&Associates'report said the deal was"not fair but ... reasonable"and valued the shares at between 21¢ and 24¢,above the 18.3¢ to 20.6¢ price offered.
Seven chief executive James Warburton is considering improving the terms of the deal for Prime shareholders to avert a vote against the deal,potentially by including a special dividend that would bring the total amount within the range deemed to be"fair"in the independent assessors report,said sources close to Seven who declined to be named as the ongoing discussions are sensitive. The board would need to approve this at the meeting on Monday.
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Mr Catalano,who has built up a 14.57 per cent stake in Prime with Thorney Investment Group billionaire Alex Waislitz,islikely to fight for representation on the regional broadcaster's board if the deal is voted down. The vote requires approval from 50 per cent of shareholders and 75 per cent of votes cast.
Prime chairman John Hartigan has warned thatderailing the takeover will result in more pain for the business with regional newsrooms facing a collapse scenario.
Shareholders like Regal Funds Managements'Philip King have also admittedthey're not happy with the price though have agreed with the rationale for the merger.