ASX: A1N ARN has plotted its PE takeover of Southern Cross Austereo for months

that at the time made no sense in Australian media circles. ASX-listed media company ARN Media, with Jefferies at its side, quickly bought up 14.8 per cent of its arch rival Southern Cross Austereo in June this year.– for shares that have since tumbled even lower. Lacking clear answers, the market speculated and competitors briefed against the move.

Anchorage would fund the cash component, while ARN would issue new shares for SCA investors. SCA’s share price jumped nearly 20 per cent as the market opened. “SCA recommends shareholders take no action in relation to the Indicative Proposal from ARN and ACP,” SCA said in a statement. It added that Grant Samuel and Corrs Chambers Westgarth had come on board for financial and legal advice.The deal would cut SCA into parts.

“Generally, we don’t like deals, but this seems sensible. I’m still trying to work out what the catch is,” Allan Gray managing director Simon Mawhinney, SCA’s largest shareholder, said. He first heard about the deal last week.“Notwithstanding some complexity, it’s also clear a lot of work has gone into the transaction to afford an outcome the regulator will be happy with. I think that we get to be part of a potentially larger and more profitable media company by having this deal proceed.

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