Nine Entertainment Co. Holdings' (ASX:NEC) largest institutional shareholder, Pendal, is backing the proposed acquisition of Domain Holdings Australia (ASX:DHG) by Texas-based real estate company CoStar Group, the Australian Financial Review reported Wednesday, citing unnamed sources.

Nine Entertainment owns 60% of Domain Holdings, and Pendal has a 7.6% stake in Nine Entertainment.

Pendal, which is owned by asset manager Perpetual (ASX:PPT), met with Nine Entertainment acting Chief Executive Matt Stanton following the release of the company's half-year results last week, according to the report, citing sources with knowledge of the meeting.

The meeting also involved Pendal's head of equities Crispin Murray, as well as investment analysts Sondal Bensan and Oliver Renton, who each covers the companies involved.

Nine Entertainment did not specifically comment on the reported meeting with Pendal in an email response to MT Newswires. Pendal did not provide any comment on the matter.

Around late February, Nine Entertainment said it would assess CoStar's unsolicited, non-binding acquisition proposal for Domain, which it described as being of "strategic importance" to its media ecosystem and long-term growth strategy.

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