MacBank eyes off Fairfax Sheena MacLean and Lara Sinclair January 26, 2006 JOHN Fairfax, the nation's second-biggest newspaper publisher, could face a $3billion-plus takeover bid from a consortium of bidders, potentially including Macquarie Bank.
Advertising industry executive Harold Mitchell said yesterday there were plans in Europe to put together a consortium to bid for Fairfax, owner of The Sydney Morning Herald, The Age in Melbourne and The Australian Financial Review.
He said the group was keen to involve Doug Flynn, the London-based former advertising and newspaper executive who had been headhunted unsuccessfully early last year to take over from former Fairfax chief Fred Hilmer.
David Kirk, the former All Blacks captain, was instead installed as chief executive late last year. Mr Mitchell told The Australian that several approaches had recently been made to Mr Flynn. "He wanted to come here. He could do it."
Mr Mitchell is the foremost media buyer in Australia. He said a move on Fairfax, which has a current market value of about $3.7billion, would require the backing of big financial institutions and people with the relevant newspaper expertise.
"I'm sure it's happening," he said.
There are rumours the bid could involve Macquarie Bank, the homegrown investment bank that is expanding its interests into the media industry through its Macquarie Media Group. Mr Mitchell would not confirm Macquarie's involvement but said the bank had "all these people in London just thinking up ideas".
Tim Hughes, executive chairman of the Macquarie Media Group, and managing director Alex Harvey were not available yesterday.
A spokeswoman said the company did not comment on speculation or market rumours.
A Fairfax spokesman said neither chairman Ron Walker nor Mr Kirk would comment.
But former Fairfax director of group operations Peter Graham, who left last year with a $1.46million payout, may be a key player in any Macquarie Bank move on the vulnerable newspaper group.
Sources said yesterday Mr Graham was acting as an adviser to Macquarie bankers as they sized up Fairfax's assets.
Mr Flynn, an Australian originally from Newcastle, is formerly chief executive of the Aegis Group, the giant British media and marketing services company, and was a newspaper executive in Australia and Britain.
He presently heads Rentokil, the international business services company, but has had a long career in media, including as managing director of Rupert Murdoch's News International operations in London.
Last February, Mr Flynn told The Australian that he had dropped out of talks to become Fairfax chief executive because the negotiations were taking too long.
Additional reporting: John Lehmann
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