Lachlan Murdoch’s A$3.3bn ($3.1bn) bid for Consolidated Media Holdings, the Australian-listed media group, on Monday collapsed after members of his bidding consortium failed to agree revised terms, in spite of intense negotiations and the arrival of a new equity backer.

The failure of the CMH deal is a high-profile setback for Mr Murdoch, 36, the eldest son of Rupert Murdoch, and his ambition to resurrect his Australian career as a leading media executive. He quit as News Corp’s chief operating officer in mid-2005 to return to Sydney with his Australian wife. His non-compete agreement with News Corp expired last year.