Southern Cross shares continue to climb on merger talks

Southern Cross shares continue to climb on merger talks

Southern Cross Media shares have continued their march north on the back of rumours swirling around the potential $4 billion merger with Nine Entertainment Co.

B&T Magazine
Posted by B&T Magazine

The Australian Financial Review has also reported this morning that two of Southern Cross Media's major institutional investors have indicated strong support for a merger.

As of 10.45 this morning, Southern Cross Media shares (SXL) had  traded as high as $1.625, having closed overnight at $1.575.

The proposed merger would see a considerable strengthening of the TV assets of  Southern Cross currently viewed as the weakest link in the group's portfolio of products.

Any such deal would also cause a headache for Win Television, which would stand to lose its current content supplied by Nine. Win's content supply contract from Nine is currently on a month-by-month basis.

The struggling Ten Network's deal with Southern Cross is due to expire in June.

Any merger between Nine and Southern Cross would require a change of media ownership laws by Federal Parliament, which has been flagged as very possible.