The overtures of Channel Seven and Ten to Federal Communications Minister Stephen Conroy appear to not carry much weight in the eyes of market speculators, with shares in Southern Cross Media continuing their ascendency this morning.
As reported in The Australian today, both rival free to air networks to Nine Entertainment Co have made strong representations to the Minister against any relaxation of the 75% reach rule, which would clear a path for the now much-discussed merger between Nine and Southern Cross Media.
The Australian also reported that Senator Conroy was said to be “vexed by the strength of their overtures”. A spokesperson for Senator Conroy said that the Minister did not comment on media speculation, but he reiterated that the government had "flagged it would relax the ownership laws last year".
Rumours have been circulating that changes to the media laws could be approved by cabinet as early as tomorrow.
Shares in Southern Cross Media (SXL) were trading in a range of $1.65 to $1.67 on early trade this morning, having leapt up nearly 50 cents since merger talks emerged nine days ago.
