Another bidder for Stuff

A High Court judge says a potential deal by a third party to buy media company Stuff Ltd could have been endangered if she allowed NZME’s interim injunction.

Justice Sarah Katz declined NZME’s application to force Stuff’s owner, Nine Entertainment, back to the negotiating table on Tuesday. She released her reasons yesterday.

In her judgment, she said Nine had walked away from exclusive negotiations with NZME after an approach from a second potential bidder.

Unlike NZME, the new bidder would not need to have Commerce Commission approval to buy the company.

Justice Katz said forcing Nine back to the table with NZME could have delayed or endangered that deal.

‘‘Further, the consequence of making the interim orders sought would be to compel Stuff to provide NZME, its main competitor, with highly commercially sensitive information about its business.’’

She said the overall interests of justice also had to be considered. ‘‘For the reasons I have outlined, it appears that granting the interim orders sought by NZME may increase the risk of Stuff ceasing operations. This would have two consequences that are relevant to the overall interests of justice.’’

She said that included a significant loss of competition in the media market and the potential for a significant number of job losses.

The court action is the latest in the on-again, off-again merger negotiations. The Commerce Commission prevented the deal going ahead in 2016. Appeals to the High Court and then the Court of Appeal both failed. Justice Katz said: ‘‘Quite simply, from Nine’s perspective time has run out for the NZME deal.’’