Second US bidder for Fairfax emerges as board decides to cooperate with sale process
The likelihood of Fairfax Media ending up in the hands of US private equity companies has significantly increased after the company revealed that a second bidder for the company has thrown its hat in the ring.
And in a sign that the board of Fairfax is now taking a sale process seriously, it has agreed to allow both new bidder Hellman & Friedman and the consortium led by TPG Capital enter a due diligence process.
The process will allow both companies full access to Fairfax’s books, including the company’s performance during this financial year. If they are satisfied with what they see, they would then make a binding offer.
So far both companies have made indicative offers that they would be willing to pay up to $1.25 per share for the company, valuing it at around $2.8bn.
hywood and Catalano should be worried. These prices will require a big improvement in the business. Certainly the fat cats in management will be quaking.
Why would Hywood and Catalano be worried? You can bet they have options that will instantly vest in the event of a takeover. Each will walk away with many millions. It’s not like either of them cares about journalism.
” sell off assets and move to dramatically cut costs, before aiming to exit four to seven years later”
gives PE little credit for how smart and creative they can be
Dick Smith?
Myer?
NEC?
ClearChannel?
Pacific Brands?
Some creative exeptions to your rule
Credit where fear and loathing is due Tim