AAP Finance

Seven’s $64m takeover of Prime in doubt

By AAP Newswire

Prime Media says it is consulting with Seven West Media after reports two of its major shareholders would block Seven's takeover of its regional affiliate.

WIN Corp owner Bruce Gordon and Australian Community Media owner Antony Catalano, who hold a combined 26.16 per cent of Prime, have been quoted as saying they would vote against the takeover.

The combined stake is enough to block the deal.

Mr Gordon and Mr Catalano instead urged the government to further relax media ownership laws so they might bid for Prime, according to The Australian and Nine Entertainment's newspapers.

"Prime is consulting with Seven in relation to the scheme having regard to the press reports," Prime said in a statement on Tuesday.

The deal is set for a vote in Sydney on December 19.

The Prime Board on Monday tried to sweeten the deal for shareholders, announcing that it would pay a fully franked three cent per share dividend if the deal goes through.