Fairfax Media’s on-off-on takeover, as told by the AFR
Over at the Australian Financial Review, a lot can change in five days, as demonstrated by media reporter Max Mason…
On Wednesday morning, Mason’s byline was on an AFR story about TPG Capital being poised to bid for Fairfax Media “as early as this week”.
And by “this week”, they meant last week, but it certainly set the share price soaring.
Which apparently meant that by Friday morning’s edition, it was off…
But, everyone cheers up over the weekend. So this morning, in another story bylined to Max Mason, it’s back on again…
Dr Mumbo is reasonably confident we haven’t heard the last of this one.
There’s nothing remotely unusual (or newsworthy) about a potential bidder being temporarily deterred from proceeding apace with a public company takeover bid once word gets out and its share price starts climbing. Max Mason and the AFR are just doing their jobs, and TPG is doing likewise.
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So the news here is that TPG talks up a bid, apparently not aware that this usually lifts a share price? Or are they the only global scale investor that can’t keep a secret?
Alternatively: was the AFR just floating a yarn? They even had Aaron Patrick imitating a WallSt guru with a comical transaction analysis.
Poor old AFR is these days a mere door mat for certain PR flaks (you feel me, Sue?)
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There is the legal issue with TPG buying the masthead newspapers. So they are looking for an Australian partner for the takeover. The question is who? I suspect Telstra.
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Browny: there is no legal issue. And there is no chance at all that Telstra will buy newspapers.
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