News Corp. has made a slightly lower, but bindingbid to acquire Australian media investment company Consolidated Media HoldingsLtd., as Rupert Murdoch's media company seeks to boost its stakes in TV serviceprovider Foxtel and the channel Fox Sports Australia.
The details of the binding bid, for 3.45 Australian dollars($3.57) per share, were announced in Sydney on Friday by Consolidated Media.
The bid amounts to 1.94 billion Australian dollars ($2.01billion). That is slightly lower than the non-binding bid of 3.50 Australiandollars per share ($3.63), or 1.97 billion Australian dollars ($2.04 billion),that News Corp. offered in June.
However, Consolidated Media said that it would payshareholders a dividend of 6 cents per share on Oct. 5, bringing the cashcompensation for existing shareholders to 3.51 Australian dollars per share.
James Packer, whose Consolidated Press Holdings Ltd. owns a50 percent stake of Consolidated Media, said in a statement that the deal"is a great outcome for CMH shareholders and for News and it reflects afair price."
Eight directors including Packer recommended that the bid beaccepted, while two directors representing the 25 percent stake held by SevenGroup Holdings Ltd. withheld their recommendation.
The bid of 3.45 Australian dollars represents a 15 percentpremium to the average share price in the three months before ConsolidatedMedia said it had preliminary discussions about a potential change of controlon May 3, it said.
A News Corp. spokesman did not return a message seekingcomment.
If the acquisition is completed by the end of November asplanned, News Corp. will double its stake in Foxtel to 50 percent and in FoxSports Australia to 100 percent.
News Corp. has said it would spin off Consolidated Media'sassets into a separate company along with its newspaper publishing and bookassets in a reorganization planned for next year.
News Corp.'s non-voting Class A shares fell 9 cents to$24.41 in afternoon trading Friday in New York. Consolidated Media shares fell2 Australian cents to close at 3.42 Australian dollars ($3.55).