Australia Court Lifts Ban on Murdoch’s Bid

A court on Wednesday removed an injunction that had blocked publisher Rupert Murdoch’s $1.47-billion bid to acquire Herald & Weekly Times Ltd., Australia’s largest media company.

The supreme court in Victoria, Australia, ruled, however, that Murdoch’s News Corp. will not be able to formally register the shares in its name until legal action surrounding the bid is resolved.

Murdoch is competing for Herald & Weekly with Australian financier Robert Holmes a Court, whose $1.32-billion offer was topped by Murdoch last Friday.

The temporary injunction blocking Murdoch from acquiring more than 15% of Herald & Weekly also was granted Friday at the request of Holmes a Court.

Citizenship Issue

Holmes a Court had claimed that Murdoch was not allowed to acquire the company because Murdoch, although born in Australia, has since become a U.S. citizen, and Australian regulations prohibit foreigners from owning more than 15% of a broadcaster.

However, Murdoch, who already owns 12% of Herald & Weekly, has said he plans to sell the TV stations if his offer is successful.

A full hearing on the issue is scheduled to begin Monday. But analysts said they believe that Holmes a Court is likely to again sweeten his offer and top Murdoch’s bid before the court case begins.

“The legal thing is just for breathing time” for Holmes a Court, said analyst Ian Story of the brokerage firm Meares & Philips Ltd.

Both suitors also have offered Herald & Weekly’s stockholders the alternative of exchanging their shares for other securities instead of cash.

Herald & Weekly owns two television stations, in Melbourne and Adelaide, and 15 newspapers. News Corp., which is based in Sydney, owns major newspapers in Australia, the United States and Britain, and also owns Fox Inc., the U.S. broadcasting and motion picture company.