By Gavin Lower
MELBOURNE--News Corp.'s (NWS) 1.97 billion Australian dollar
(US$2 billion) bid for Consolidated Media Holdings Ltd. (CMJ.AU) is
final, the chief executive of the company's Australian unit News
Ltd. said Wednesday.
"That's it," Kim Williams said in an interview after the company
offered to pay A$3.50 a share for the company in a deal that, if
successful, would strengthen its position in the Australian pay TV
market. "The bid is of course conditional on a number of issues,
including regulatory approval, so that's some months away," he
said.
Billionaire James Packer, who owns half of Consolidated Media,
has welcomed the bid from News Ltd. but the company will also need
to secure the agreement of Seven Group, which owns a 24% share in
the Australian company. News Corp. wants Consolidated Media so it
can double its existing stake to 50% in Australia's largest pay
television company, Foxtel. Consolidated Media owns a 25% stake in
the company.
The deal comes as Australian consumers remain subdued by the
concerns circling the global economy. Mr. Williams said Australian
consumers are cautious about their spending, which has hit domestic
consumption and advertising.
"We remain hopeful consumers will break out of that but at the
moment there are no signs of consumer green shoots," he said.
Write to Gavin Lower at gavin.lower@wsj.com