Herald company in talks on sale

By KARYN SCHERER

One of New Zealand's largest media companies has confirmed it is in talks which could lead to it being swallowed by its sister company in Australia.

Wilson & Horton Holdings, publisher of the New Zealand Herald, yesterday confirmed Australian reports that it is talking to Sydney-based APN News & Media about a possible sale. Both companies are controlled by Dublin-based Independent News & Media.

Wilson & Horton chief executive John Sanders said no decision had yet been made on whether to proceed, but he understood imputation credits for holders of W&H convertible preference shares would not be affected if a sale did go ahead.

As well as the Herald, Wilson & Horton owns several regional newspapers, community newspapers, magazines and a commercial printer.

Together with APN, it also owns a share of New Zealand's largest radio company, The Radio Network.

APN is Australia's largest operator in regional newspapers, radio and outdoor advertising.

In July, British newspapers said the Irish media group planned to become Australia's largest publisher.

Citing sources close to the company's chairman, Sir Anthony O'Reilly, the Sunday Times said the media tycoon planned to use APN as a takeover vehicle for John Fairfax Holdings, the publisher of the Sydney Morning Herald, the Age in Melbourne and the Australian Financial Review, in a deal that could be worth nearly $3 billion.

Speculation mounted last month when it announced it was raising €104 million ($222 million) for "the first stage in a grander strategy".

Australian analysts say selling W&H to APN could better position the company for a Fairfax takeover.

Fairfax shares have steadily declined in price since Kerry Packer sold his stake in the company in July. Its annual turnover at the end of June was $A1.2 billion ($1.6 billion).

APN reported turnover of $A615 million ($750 million) to the end of December, and Wilson & Horton reported turnover of $471 million for the same period.