Big investors in Australian media group APN have questioned the latest takeover attempt by Sir Anthony O'Reilly's Independent News & Media (IN&M).

IN&M is APN's largest shareholder, with a 40 per cent stake in the business. Perpetual, which owns 14.8 per cent and is its second-largest shareholder, said IN&M's A$3.75 billion (€2.26 billion) approach was valued at the "low end" compared with recent media deals in Australia.

Australian Foundation Investment Company (Afic) and Djerriwarrh Investment, which together own 2 per cent of APN, have also questioned the deal.

The shareholder resistance comes as IN&M and its private equity partners Carlyle and Providence carry out final due diligence on APN. A subcommittee of APN's independent directors is assessing the takeover approach from Sir Anthony, who abandoned a previous approach with Providence in October.

"The independent subcommittee, which is being chaired by Grant Samuel, is yet to reach a conclusion on the offer of $A6.05 per share. The independent subcommittee will be meeting with members of the consortium when they arrive in Australia," APN said in a statement yesterday.

According to local media reports, senior figures from IN&M and its partners will meet the APN directors today.

APN investors have implied that the price of the bid should be increased. John Sevior, head of Australian equities at Perpetual, said the offer was low. "Compared to the recent multiples paid for television assets, it looks fair or in line, but compared to multiples paid for newspaper business, it looks low," he told the Sydney Morning Herald.

Ross Barker of Afic and Djerriwarrh told the New Zealand Herald, itself an APN publication, that he could see no compelling reason to accept the approach.

Merrill Lynch analysts have suggested the bid may have to be raised to A$6.50 per share.