Fairfax 'in Nine talks'

SYDNEY - John Fairfax Holdings, Australia's second-largest newspaper publisher, declined to comment on a report it is in talks with Kerry Packer's Publishing & Broadcasting about buying the Nine Network.

Fairfax directors proposed buying the television network using stock, or to take a stake as part of a joint venture, the Weekend Australian reported, without naming a source for the information.

Fairfax, which publishes the best-selling broadsheets in Sydney and Melbourne, is facing rising competition for advertising from internet rivals, and has asked the Government to abolish media-ownership rules preventing it from expanding into radio and television.

Prime Minister John Howard's coalition has taken control of both houses of Parliament, which may help him pass such laws.

"The company continues to keep its strategic options open and explore opportunities," Fairfax spokesman Bruce Wolpe said, declining to comment on specific reports.

"We've always said we want the option to explore growth in the electronics media.

"It doesn't mean we want to do it, but we want the option to do it."

- BLOOMBERG