Catalano,who is looking to merge his Australian Community Media (ACM) business with Southern Cross,has crossed swords with Stokes before,agitating againsthis bid for Prime Media Group in 2019.
However,he praised Stokes’ raid on ARN’s register on Monday. “It’s clever. They’ve locked in a good position for themselves,” Catalano said,adding that with Seven West sitting on its register,ARN’s management would have to be mindful of what Stokes did next.
ARN’s initial raid on Southern Cross in June greased the wheels for its non-binding offer to acquire 100 per cent in October. But Catalano – backed by billionaire businessman Alex Waislitz – has lobbed a counteroffer to Southern Cross.
He said the ACM offer was an easier option for shareholders,combining ACM’s key newspaper titles,includingThe Canberra Times,with Southern Cross’ metro and regional radio assets. Under the terms of the offer,Catalano would receive a 20 per cent stake in Southern Cross and retain his digital real estate business.
Publicly and privately Seven has said the raid on ARN isn’t a smokescreen for a future takeover bid for either Southern Cross or ARN. However,Seven could seek a seat on ARN’s board. A senior source close to the company and not authorised to speak publicly said the Stokes camp remained undecided on whether to get a Seven director installed on ARN’s board.