Latest report suggests any SCA deal is still a way off yet

A new report suggests any deal to buy out and potentially split up SCA won’t get across the line for months yet.

It comes as ARN prepares to release its half-year results this week.

According to The Australian’s Business Editor Cameron England (subscription required), sources close to the talks say the company’s crowded share register, regulatory issues and the divergent desires of various stakeholders make it akin to unscrambling an egg.

This latest news follows reports last week that Australian Community Media, headed by Antony Catalano, was in talks with ARN Media about a possible joint bid for SCA.

England notes it’s a well worn path for SCA, after its discussions with ARN and Anchorage Capital on a possible deal ended up going south.

“A major hurdle to overcome in any deal for Southern Cross is the fact that half of its share register is tied up with a handful of stakeholders, with Mr Catalano and (Alex) Waislitz holding about 15 per cent, ARN about the same, and fund managers another 20 per cent or so.”

“Aligning the interests of all of these parties in a deal that would need to involve a complex carve-up of assets is a high bar to overcome.”