News Corp revises HWT bid statement

Press, 10 January 1987, Page 28

News Corp revises HWT bid statement

NZPA-AAP Melbourne Rupert Murdoch’s News Corp has registered a revised Part A statement for its sAustl.B billion (5NZ2.304 million) bid for The Herald and Weekly Times, Ltd, with the National Companies and Securities Commission. It is understood the revised document followed Victorian Corporate Affairs Commission concerns that the original document did not disclose all relevant details of the HWT offer. The Corporate Affairs Commission said the new offer document now disclosed all relevant information, necessary to give shareholders a full understanding of the takeover situation. The document gives shareholders a comprehensive explanation of the consequences of Mr Murdoch being deemed a foreign person under the Broadcasting Act (1942), and the powers of HWT

directors to refuse to register share transfers if the act is contravened. The act would be breached if News Corp became entitled to more than 15 per cent of the HWT group and Mr Murdoch could be faced with a fine, or more importantly, a suspension or revocation of broadcasting licences. But Mr Murdoch said he would divest the HWT television and radio assets, television stations HSV7 Melbourne, ADS 7 Adelaide, and radio 3DB Melbourne, 3GL Geelong, SAD Adelaide, SPI Crystal Brook and SSE Mt Gambier, if the take-over bid for the group is successful. . In the offer document News Corp said it had legal advice that selling these HWT interests “expeditiously and in any case within six months” would make suspension of licences by the Broadcast- ? ing tribunal a remote possibility.

However, the Australian Broadcasting Tribunal has not expressed any view on this matter. News Corp could also be faced with a refusal from HWT directors to register the share transfers following acceptance of the sAustl2 a share offer or scrip alternative, if the Broadcasting Act is contravened. “As a practical matter, however, News is confident that the articles of HWT and such provisions of the act would not have a material impact on the implementation of the take-over scheme,” News Corp said. Meanwhile, the Federal Government : has confirmed the Foreign Investment Review Board was deciding whether the bid should be classed as a foreign investment. The board has the power to block company acquisitions by foreigners, if the result was deemed contrary to the national interest.