News: Stars may align for Southern Cross $4B merg

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Southern Cross Media Group Limited (ASX:SXL) has responded to media speculation surrounding a possible $4 billion merger with the Nine network, saying it is reviewing a number of strategic options.



Southern Cross says its content agreements with Ten Network Holdings (ASX:TEN) expire in mid 2013 and it has not yet formed a view as to its preferred strategic direction.



The media and broadcast company said a merger with Nine would be banned under legislation limiting a metropolitan TV network reaching more than 75 per cent of the population.



Federal Communication’s Minister Stephen Conroy has proposed the abolishment of the legislation, potentially paving the way for the merger combining the Southern Cross and Nine television network’s.



Southern Cross says it does not intend to comment further in response to speculation and intends to make announcements when appropriate.



In the first half of fiscal 2013, Southern Cross Media Group posted a net profit of $45 million.