Australia's APN News & Media Limited confirmed today it had received a buyout approach from Independent News and Media.
APN's shares jumped as much as 11 per cent on the statement, which came in response to a newspaper report saying APN's 40 per cent shareholder Independent had teamed up with private equity group Providence to buy out the group in a deal worth 3.8 billion Australian dollars (€2.29 billion).
The company said no formal bid had yet been tabled.
The move follows share raids last week by Australia's media moguls Rupert Murdoch and Kerry Stokes on rival groups, positioning themselves for industry consolidation after parliament passed a law relaxing 20-year-old limits on foreign and cross-ownership of newspapers, television and radio stations.
The Australian newspaper said Independent, headed by Sir Anthony O'Reilly, was believed to have presented APN's directors with a bid of around 6.00 Australian dollars a share, up from Wednesday's close of 5.49 dollars.
APN's shares touched a record high of 6.09 dollars after the confirmation from APN.
Independent News and Media owns 123 newspaper titles and 132 radio stations in Australia and New Zealand.
The bid to privatise APN comes amid speculation that Macquarie Media Group may be considering a bid for Australia's largest regional television network, WIN Corporation.