Investors in Independent News & Media (IN&M) will learn this morning whether Sir Anthony O'Reilly's €1.93 billion bid to take private Australian media group APN can go ahead as planned.

Ongoing since last October, the current phase of the takeover saga was to reach its conclusion overnight in Sydney at an extraordinary general meeting (egm) of APN investors.

IN&M's shareholders have already approved the transaction, which is backed by private equity groups Providence and Carlyle and designed to provide at least €375 million in cash for Sir Anthony's organisation.

However, it appeared in advance of the APN meeting that resistance from key shareholders in that group would scupper the transaction. The Australian newspaper reported that the bid would founder because 11.7 per cent shareholder Perpetual Investments and smaller investors such as 1.3 per cent holder Australian Foundation Investment Co (AFIC) had decided to vote against it.

The proposal is structured as a scheme of arrangement, which requires acceptances of 50 per cent of shareholders and 75 per cent of shares voted. As a buyer and seller in the deal, is not entitled to vote in respect of the 42 per cent stake it currently holds in APN.

This means Perpetual and AFIC's combined stake represents almost a quarter of the remaining 60 per cent of eligible shareholders. Although the Australian said Argo Investments, another small shareholder, also voted against the deal, it said the vote of 7.5 per cent holder Maple-Brown Abbott was not known.

A spokesman for in Dublin declined to comment on reports in the Australian and New Zealand media that the Irish group had canvassed support for the transaction among APN investors. He had no information on the count of proxy votes for the egm.

Sir Anthony first sought to take APN private last October with a Providence-backed bid at A$6.02 (€3.67) per share. After withdrawing that proposal, he enlisted the support of Carlyle for a renewed bid at A$6.05 per share in January. Within a week, however, Perpetual and AFIC signalled their resistance to the proposal.

IN&M wants to reduce its APN stake to 35 per cent in the take-private, but retain a voting interest of 39.3 per cent. Providence would hold 37.5 per cent of APN and Carlyle 27.5 per cent.