Shares in APN News and Media, part owner of the Australian Radio Network, have taken a hit on the Australian Stock Exchange following an announcement to the market that talks with a potential suitor have broken down.

The company said last month that a consortium of private equity interests, led by Independent News & Media, had been interested in purchasing the company. Senior management are still willing to talk to the consortium and any other potential bidders, but the initial timescale laid down by the board was not reached.

At close of trading on Friday afternoon, APN shares were down 35 cents, just over 6%, to $5.78.

A statement to the market said:

On October 26, 2006 the Company advised the ASX that it had received a preliminary approach regarding a bid for its shares by a Consortium comprising Independent News & Media PLC (INM) and private equity associates. An independent committee of the APN Board was constituted to engage in discussions with the Consortium.

The independent committee of the Board of APN News & Media announced today that discussions with the Consortium have ended.

The independent committee was chaired by APN’s senior independent director, Mr. Ted Harris. The other members of APN’s independent committee of non-affiliated directors comprised Sir Wilson Whineray and Mr. Kevin Luscombe. Grant Samuel was the financial adviser.

Mr. Ted Harris, Deputy Chairman of APN and Chairman of the independent committee said:

“INM has informed APN’s independent committee that the Consortium was unable to make a formal offer within the Consortium’s desired timetable. We will continue to examine opportunities, including further discussions with INM, for the benefit of all APN shareholders.”