The TPG consortium is bidding on part of the business: the online property classifieds business Domain as well as the newspapers The Sydney Morning Herald, The Age and The Australian Financial Review.
You see that after lobbing the 95 cents a share cheapskate offer, TPG then briefed the media that all up the 95 cents cash and the bits left behind were worth around $1.25 a share to Fairfax shareholders. He added however that it was too early to say whether the bid should succeed.
But the offer, under which Fairfax shareholders would retain ownership of the smaller mastheads in the Australian Community Media division as well as New Zealand Publishing, Macquarie Media's 2GB and the streaming service Stan, its co-venture with Nine, has been rejected.
Fairfax shares jumped more than 8% to $1.16 (a six year high), then came back to trade just over $1.14, up 6.7%, but hardly a ringing endorsement of the higher price.
Fairfax had announced the job cuts to save the company $30 million.
Deutsche analyst Entcho Raykovski said the "compelling" $2.76 billion offer required engagement from the Fairfax board, while Citi analyst David Kaynes said the all-cash offer is highly likely to proceed.
A consortium led by private equity firm TPG has raised its takeover approach for Fairfax to $1.20 per share and is now proposing to buy out the entire firm.
Regardless of whether the Revised Indicative Proposal proceeds to an offer for Fairfax, the Fairfax Board believes that Fairfax has an announced strategy for the future that will deliver value for shareholders.
Long-suffering shareholders had pinned their hopes on Fairfax's plan to spin off Domain as it continues to cut costs at its newspapers.
The Fairfax board Monday morning said it was reviewing the "revised, indicative, preliminary and non-binding" proposal and would update shareholders when it had been fully assessed.
The revised indicative offer for the whole of Fairfax meant TPG and the pension fund, had "effectively taken on the on-selling risk of assets [they have] no interest in keeping", Han said in a research note.