Broadcaster SCA has rejected a takeover proposal by competitor ARN Media and private equity firm Anchorage Capital Partners.
The board of directors says the proposal is "not in the best interests" of SCA shareholders.
However, SCA is "willing to consider any revised proposal".
The complicated offer, made in October last year, valuing SCA at $330 million, is made up in part cash and part shares.
However, SCA says mutual due diligence work shows "fundamental changes" to the economics of the proposal, including an increase in the leverage and reduction in the earnings base of a new company being formed.
This had "significantly reduced" the value of the proposal to SCA shareholders.
“Our board acknowledges the strategic merit underlying the consortium’s proposal but considers that the current terms of the proposal undervalue SCA," said SCA chair Rob Murray.
"We are open to considering proposals from the consortium or other parties that would deliver fair value and be in the best interests of all our shareholders.
“In the meantime, we remain focused on continuing to optimise the audio ecosystem we have created across broadcast radio and digital audio.
"This is central to our strategy and our value proposition, and we are committed to converting our audience leading positions into sustainable growth and returns to our shareholders.”
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