Former Domain Group Boss Makes Bid To Block Fairfax Merger: Reports
Antony Catalano is reportedly trying to stop the merger with Nine Entertainment by buying a major stake in Fairfax Media, according to The Australian.
A meeting is set to take place between Fairfax shareholders on Monday, and The Australian understands Catalano hopes they will vote to delay the merger with nine by two weeks.
It was also reported Catalano had been buying shares, valued at 65 cents each, in a move to own 19.9 percent of Fairfax.
It is believed he owned 1.3 percent at last count.
A letter to Fairfax chairman, Nick Falloon sent by Catalano on Sunday was obtained by The Australian, and outlines his intentions for the media company.
Catalano hopes Fairfax will “pursue a multi-pronged strategy to build and realise value for Fairfax shareholders," The Australian reported the letter said.
“This strategy includes the divestiture of non-core assets, building the Domain franchises and pursuing asset sales with a suitable control premium not presently factored into the Nine Entertainment scheme, with all proceeds to be returned to Fairfax shareholders as cash distributions or by way of share buybacks,” he said.
Nine claimed its bid would mean Fairfax share prices would rise to 91.9 cents each, but that price fell to 63 cents on Friday,
Catalano also claimed it was the "general sentiment" of shareholders that Nine's offer was a disappointment.
Fairfax Media owns 60 percent of the Domain Group -- of which Catalano was the former CEO.
Catalano argued his former position within Domain meant he could provide "significant assistance" for share prices because of his "unique knowledge".