7 West Media not in merger talks with Fairfax

Seven West Media Limited issued a statement to the stock exchange yesterday saying it is not in merger talks with Fairfax Media.

The statement reads simply:

Whilst it does not generally comment on rumours, Seven West Media Limited confirms that it is not involved in any discussions with Fairfax Media.

The company explained its position after a report in The Australian said the Fairfax chair Roger Corbett was seeking a merger. That report now appears to have been wrong.

Some Seven shareholders expressed concern about the company increasing its exposure to print newspapers, and the share price fell as a result of the rumours this week.

A merger may potentially have had implications for Fairfax Radio, which would possibly need to be sold to comply with current cross media laws.

Seven West Media currently owns its own radio stations in Western Australia, where Chairman Kerry Stokes (pictured) founded his business.

The Australian has reported on the latest statement and further explained its take on Fairfax merger rumours.

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