APN News and Media shareholders have rejected a multi-billion dollar bid from its biggest stakeholder, Independent News and Media (INM).
APN said the bid collapsed after its second-biggest shareholder, fund manager Perpetual, voted against the bid from Tony O'Reilly-controlled INM.
APN said 51 per cent of all votes backed the deal, well below the 75 per cent majority needed. It is the latest in a string of failed Australian takeovers by Dublin-based INM.
It was INM's fourth bid for APN, having raised its offer last month. INM bid with private equity partners Carlyle Group and Providence Equity Partners.
INM, which publishes 175 newspapers and magazines, had planned to reduce its stake in APN to 35 per cent from 42 per cent, and use the proceeds to expand in high-growth markets such as Asia.
Gavin O'Reilly, INM chief operating officer, said the setback would not affect INM's expansion plans and that there were no plans to sell down the APN stake.