'Independent' owner linked to Fairfax bid

Independent news & Media is understood to be considering making a takeover approach for Fairfax Holdings, Australia's largest newspaper group.

The Irish-based company is planning to use Australian Provincial Newspapers (APN) as a takeover vehicle in a deal that could be worth £800m, according to reports over the weekend. The media group, which owns The Independent and Independent on Sunday titles in the UK, declined to comment.

Fairfax, which owns the Sydney Morning Herald, Australian Financial Review and The Age, became vulnerable to a bid after Kerry Packer, the Australian media tycoon, sold his stake earlier this month.

Mr Packer, who owned 15 per cent of Fairfax, was blocked from a making a full bid for the newspaper group because of his control of Channel Nine, a Australian television station.

Australia's ownership regulations also prevent foreign investors from taking more than a 25 per cent stake in a media company.

APN News & Media, the largest operator in each of regional newspapers, radio broadcasting and outdoor advertising in Australasia, is 41 per cent owned by Independent News & Media. Independent News & Media was able to take the 41 per cent stake in APN as the purchase was financed through a family trust of Sir Anthony O'Reilly, the group's executive chairman, who has children with Australian citizenship.