With speculation around that Macquarie Bank may be moving to acquire more regional radio assets, rumours have been circulating that DMG’s regional stations are in the company’s sights (see our earlier stories this week).

But it may not be as easy as the rumour mill is predicting, because there is cross-over in many markets which could see MacBank owning up to four stations if it acquired both DMG and RG Capital’s regional assets.

Towns where RG and DMG compete with eachother include: Albury-Wodonga, Gosford, Cairns, Townsville, Sunshine Coast Rockhampton/Gladstone and Mackay. DMG’s Star and Hot brands are up against RG Capital’s SEA and Heritage brands in most of these markets.

If MacBank did end up getting hold of both networks, it would be forced to divest many stations, starting a second round of scrambling by other groups as they moved to take advantage of the forced sales.

The ABA’s Media and PR Manager, Donald Robertson , explains to radioinfo where the realities of such an acquisition strategy might get tripped up by Australia’s radio ownership legislation:

radioinfo: Is there any difference in an investment fund owning stations compared with an individual or a single company?

Robertson: In terms of ownership limits, there is no reason why a fund would be exempt from complying in the same way as an individual or a company, but it would depend on the issue in question.

There are a variety of complicated ownership structures operating in the media, and these arrangements would need to be examined individually to say what the differences in treatment could be under different parts of the act.

radioinfo: What percentage must an owner hold to be said to be in control?

Robertson: Under Part 3, Clause 6 of the Act, company interests exceeding 15% are regarded as being in a position to exercise control.

radioinfo: Could you anticipate the ABA being amenable to softening the rules for an investment fund because experience shows that institutional investors do not usually interfere in editorial issues?

Robertson:The ‘two to a market’ limit is fairly black and white.

radioinfo: Does the ABA have any other thoughts on the recent speculation and is the ABA watching this?

Robertson:The ABA is aware of the media reports and will discuss issues with Macquarie as necessary.

radioinfo: Will it be a topic on the agenda at the ABA conference next week?

Robertson: Not specifically, but the general issue of media ownership limits will probably get discussed at some point.

The ABA’s annual conference will be held in Canberra next week.