O'Reilly and Soros set for media link-up

TONY O'REILLY and US billionaire investor George Soros are teaming up to make a major media acquisition in Europe.

Dr O'Reilly has also rekindled his interest in the Australian publisher John Fairfax Holdings, which he lost to the well-known media tycoon Conrad Black in a bidding war 11 years ago.

Mr Soros and Dr O'Reilly are currently business partners through Eircom. The Independent News & Media boss is chairman of Valentia, the consortium which bought Eircom last year. One of the investors in Valentia is Soros Private Equity.

"His group is very media-interested," Dr O'Reilly told the Australian Financial Review. "If you get it right, media is a damn good business to invest in."

The report did not say what companies the two businessmen are eyeing but given the diversity of Mr Soros' investments, few companies could be ruled out.

Independent has been linked to Fairfax since last year when it reshuffled its assets in Australia and New Zealand. A bid for Fairfax, the fourth largest Australian media company, would set Independent back around 1bn euro.

"Our interest and admiration for Fairfax continues, and if an opportunity occurs, either through a change in legislation or a change in economic circumstance, we'd certainly be at the party."

Australian laws prevent the takeover of media assets by foreign companies, limiting their investments to 25% in any one radio station, newspaper or television company.

"I would be confident that the foreign media ownership laws in the foreseeable future will change to accommodate more foreign ownership. When that will be, I don't quite know," Dr O'Reilly said.

He is also believed to be interested in Australia's Rural Press and Western Australian Newspapers.

Independent owns 45% of APN News & Media, Australia's sixth largest media company. APN's merger with his New Zealand newspaper group Wilson & Horton Group last year created an 860m euro media business.

While Independent are carrying quite a bit of debt, Dr O'Reilly indicated the radio assets of APN may not be part of that company in the long-term, the Australian Financial Review said.

Shares in Independent News & Media have dropped by around 17% this year, despite the company buying back several million shares at the cost of over 5m euro. A spokesman for Independent said it does not comment on market speculation.