Australia's APN News & Media said today it had ended talks with Independent News & Media on a A$3.8 billion (€2.28 billion) buyout bid, though it left the door open to resurrecting discussions.
APN said the team led by the Irish media group had failed to make a formal offer within its own timetable after reviewing APN's books.
"We will continue to examine opportunities, including further discussions with INM, for the benefit of all APN shareholders," APN's deputy cChairman Ted Harris said in a statement.
The talks began last month when Independent, which already owns 40 percent of APN, made an approach to take APN private with a team including private equity firm Providence Equity Partners.
It was not clear when talks might resume with Independent News, which was expected to release a statement similar to APN's later in the day. "The door is still open," a source close to the discussions said.
Two analysts said that while Providence Equity Partners had walked away, Independent News might be able to find other private equity players to form another consortium.
"It might still be of interest to some of the other private equity groups out there," said ABN AMRO analyst Fraser McLeish.
APN shares sank as low as A$5.61 and last traded down 6.2 per cent at A$5.78, valuing the group at A$2.7 billion. The broader market was down 0.2 per cent. The market had expected an offer of around A$6.02 to go to APN's minority shareholders, and the group's shares traded as high as A$6.20 after the approach was announced last month.
Private equity firms are scouring Australia for media assets ahead of a new law taking effect next year easing foreign ownership caps and allowing owners of one platform - TV, radio or newspapers - to own another platform in the same market.
CVC Asia Pacific has already formed a joint venture with Publishing & Broadcasting Ltd. holding PBL's TV, magazine and Internet businesses, and Kohlberg Kravis Roberts did a similar deal with Seven Network Ltd. this week.