Murdoch's son Lachlan linked to possible bid for APN

LACHLAN MURDOCH, the son of media tycoon Rupert Murdoch, has been tipped in the Australian media as a possible bidder for APN, the Australian group 39 per cent owned by Independent News.

Mr Murdoch's recent bid to buy Australia's Consolidated Media Holdings fell through after its biggest shareholder, James Packer, refused to sell for the $4.80 Australian dollars a share he was offering.

Recent reports in the Australian media suggest Mr Murdoch could turn his attention to APN, which Independent News and private equity backers Providence and Carlisle failed to take over last year.

The reports pointed out that Mr Murdoch would have had to raise $600 million himself to land Consolidated Media, and argued that if he still has access to these resources, he could bid for APN.

The Irish media group's bid for APN failed last year when the Australian company's biggest shareholder, fund manager Perpetual, spurned the offer.

This meant that Independent News could not get the 75 per cent acceptances needed to take over the company, which is quoted on the Australian Stock Exchange. It currently has 39.2 per cent of APN. The news comes as it emerged yesterday that Sir Anthony recently spent over €2 million buying Independent News & Media shares.

Sir Anthony bought one million shares in the group for €2.08 each.

He bought the shares through two vehicles, Indexia Holdings and Cartson Holdings. The transactions increased his holding in the company by 0.12 per cent to 27.22 per cent.

Meanwhile, ratings agency Fitch has re-rated Dublin-quoted Independent News from stable to negative, reports said yesterday.

Fears that the global slowdown will force a fall in advertising revenues prompted the agency's analyst Alex Griffiths to reassess the company.

He said a 5 per cent fall in advertising revenue could translate into a 15 per cent drop in earnings for the Irish group.

Bonds issued by the group are due to mature in May of next year. Mr Griffiths suggested that if the company were to need additional finance after this point, it may not be able to get it at attractive prices, as credit is dearer.

Fitch also said it was withdrawing coverage of the company because of "insufficient public information".