Seven Network Ltd
(ASX:SEV) shareholders are tomorrow expected to approve the television network’s planned $3 billion merger with industrial equipment group WesTrac.
The votes are yet to be counted and the company has refused to discuss retail or institutional proxy voting, which closed yesterday, but there is strong market speculation that the deal will attract sufficient investor support to go ahead.
Shareholders will meet in Sydney tomorrow morning to vote on the transaction, which would combine Chairman Kerry Stokes’ media and earthmoving interests.
Ausbil Dexia and Perennial Value Management, Seven’s two largest shareholders, backed the deal early last week when Mr Stokes agreed to forgo $130 million worth of shares if WesTrac missed its 2011 earnings targets.
White Funds Management, Mackenzie Cundill and a US fund manager have also indicated they will vote in favour of the proposed merger.
Half of voting shareholders and 75% of voted shares must be in favour of the deal for it to succeed.
Seven Network reported a profit of $12.49 million for the 2009 financial year.
