The battle for James Packer’s Consolidated Media Holdings is over – for now at least.
After Kerry Stokes’ Seven Network grabbed a 20% stake in the company in July, there had been speculation that Stokes may be set to launch a full takeover for the company.
But in a canny deal, Packer has invited Stokes to appoint two representatives to the Consolidated Media board. In return, Stokes has agreed he will not buy any more shares in Consolidated Media for 12 months.
Seven Network executives Ryan Stokes and Peter Gammell will join the Consolidated Media board. Packer’s private company Consolidate Press has also appointed another director, long-time Packer adviser Ashok Jacob.
This gives Packer three board members compared with Stokes’ two.
The truce will buy both men time. A takeover bid from Stokes (or a defensive bid from Packer) would have been an expensive exercise, given the company’s share price has jumped more than 40% over the last four months.
As Stephen Bartholomeusz argues on Business Spectator today, the big prize within Consolidated Media is its 25% stake in Foxtel. In 12 months time, more should be known about whether Telstra’s stake in Foxtel is likely to be up for grabs.
If so, Consolidated Media will be keenly sort after and the battle between two of Australia’s great media moguls might well be back on.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
