Media suitors remain tight lipped
The mystery bidders for Fairfax Media’s New Zealand operations are opting to stay quiet until the Commerce Commission has decided whether to allow the media firm to merge with NZME.
‘‘They see no reason to comment [until then]. It’s of no commercial benefit,’’ an investment banker said, having asked the bidder for comment.
The banker, who did not want to be identified, said his firm was not acting on the bidder’s behalf and had merely made an introduction to Fairfax Australia for the consortium.
Fairfax confirmed on Thursday that it had received interest from an unnamed party in buying its New Zealand operations, but said it was not in discussions as it was focused on the NZME merger.
‘‘The letter contains no offer capable of acceptance and Fairfax is not engaged in any discussions in relation to the letter,’’ Fairfax said.
The company did not say how much the offer was for, but the National Business Review reported it was made in late November for up to $120 million if the proposed merger with NZME fails.
The offer followed a two-day conference at which Fairfax and NZME responded to Commerce Commission questions about the proposed merger.
The commission said in a draft ruling in November it proposed to decline the merger, primarily because of concerns about media diversity, though it is not expected to finalise its decision until March. That is when the unnamed bidders might go public.
The competition watchdog this week questioned how editorial independence could be guaranteed if a merged company later came under new ownership.