Flailing media group Fairfax Media Limited (ASX: FXJ) is near the top of the S&P/ASX 200 gains list with share prices up close to 5% to 68c per share off the back of fresh rumours surrounding a takeover by Seven West Media Ltd (ASX: SWM).
Fairfax takeover speculation has been simmering for some time as the stock has been stuck in reverse, with the $1.5 billion market cap company bottoming out back in November 2017 when it cast off online real estate arm Domain Holdings Australia Ltd (ASX: DHG).
But Seven West Media has had its own troubles in the last 12-months as its share price has ditched out from 73c per share at this time last year to 49c today, despite being up 0.4%.
Other potential takeover suitors for Fairfax have included Nine Entertainment Co Holdings Ltd (ASX: NEC) who reportedly had an interest in Fairfax last year, after TPG Capital walked away from takeover talks where Fairfax would control 35% of the entity that was merged with Nine.
Other potential takeover partners could include Macquarie Group Ltd (ASX: MQG) – Macquarie has already completed some good due diligence on Fairfax in its advisory capacity.
A situation to keep a close eye on for shareholders who have struggled along with Fairfax's dwindling returns and share price.
