Posted July 02, 2017 17:07:51

Photo: Some Fairfax shareholders say the company could be worth up to $4 billion. (ABC/AAP)

US investment company TPG Capital has abandoned its $2.76-billion bid to take over Fairfax Media, clearing the way for rival bidder Hellman & Friedman to make an offer.

TPG confirmed it had ditched plans to buy the owner of The Sydney Morning Herald, The Age and real estate advertising business Domain, after looking at Fairfax's books.

"TPG has today exited the Fairfax due diligence process and has elected not to proceed with an offer," a spokesman said in a statement.

"TPG thanks the board and senior management team of Fairfax for the integrity and focus they have brought to the discussions."

Some Fairfax shareholders have said the company could be worth up to $4 billion if it successfully spins off Domain (the only majorly profitable and growing division), which would be significantly more than the $2.7–2.9 billion flagged by the private equity firms.

A Fairfax spokesperson was not immediately available for comment.

ABC/Reuters

Topics: business-economics-and-finance, journalism, information-and-communication, australia