Independent News & Media, the Dublin-based group controlled by Sir Anthony O’Reilly, suffered a major setback on Friday when shareholders of APN News & Media rejected a takeover bid that valued Australia’s fourth-largest media company at about A$3bn excluding debt.

IN&M, which already owns about 40 per cent of APN, had teamed up with the private equity firms Carlyle and Providence Equity Partners to secure control of APN at a time when a legislative overhaul has triggered further consolidation in the Australian media sector.