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Fairfax Media Limited shares up on Seven West Media Ltd takeover rumour

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.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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