News: Gyngell to fight for star crossed merger

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Southern Cross Media Group Ltd (ASX:SXL) remains in the spotlight this morning, as the groups much hyped $4 billion merger with Nine Entertainment appears increasingly under threat,  from the government's fiercely opposed media reform propositions. 



At its centre is the so called ‘reach rule’- which prohibits broadcasters from reaching 75 per cent of the Australian population.  Nine CEO David Gyngell is expected to put forward the case for the rule to be overturned, at a parliamentary committee.

 

Southern Cross shares have soared more than 50 per cent this year on speculation of a merger. Southern Cross last recorded a 45 million net profit to December 31.