article on packer sale

This was from Business spectator - I liked the small paragraph

"A representative from Challenger said the sale of the shares was oversubscribed"


Packer sells stake in Challenger Financial Services for $422m

Billionaire James Packer's private company Consolidated Press Holdings Ltd has sold its 20 per cent stake in Challenger Financial Services Group Ltd for $422 million.

A spokesperson for UBS, which conducted the sale, confirmed the transaction of almost 122 million shares was made this afternoon at $3.25 per share.

It is the second major asset sale by Mr Packer in as many weeks, after his 40 per cent-owned Consolidated Media Holdings Ltd offloaded its stake in online job ads group Seek Ltd amid growing market speculation that Mr Packer is moving to ward off a takeover bid from Kerry Stokes' Seven Group.

ConsMedia's sale of its 26 per cent stake in Seek last week, worth $441 million, and the $50 million sale of its headquarters in Sydney coincided with the company's announcement that it would look to buy back 10 per cent of its shares.

The Australian and the Australian Financial Review newspapers reported that it was understood that Challenger management was not told of the Packer family's decision to sell, which was hastily arranged after ConsMedia received a request for its shareholder register from Mr Stokes's Seven Network.

It is also understood that Mr Packer did not seek the counsel of his advisers before making the decision, the papers said.

Earlier today, ConsMedia said a subsidiary of Seven Group Ltd had approached it for a copy of the company's register of members and interests, fuelling speculation that Kerry Stokes' media company may launch a takeover of the group.

This follows a spate of share purchases by Seven earlier this year, which took its holding in ConsMedia to just below the 20 per cent takeover threshold.

The AFR reported that Mr Packer was believed to think that the market had run too hard over recent months, and was keen to cash-out his non-media and gaming investments.

A representative from Challenger said the sale of the shares was oversubscribed.

Challenger issued a statement to the Australian Securities Exchange (ASX) after the market closed confirming the transaction.

Shares in Challenger closed 3.49 per cent higher at $3.26, against a 0.13 per cent rise in the benchmark index.

Seven bid imminent

Analysts said the move meant a bid for ConsMedia by Seven was imminent.

"There has been some chatter in the market that the share price that Seven would need to offer (ConsMedia shareholders) would be somewhere north of $4," IG Markets analyst Cameron Peacock said.

"The shares are currently trading at about $3.20, it obviously got the market a little bit excited."

Analysts also say that Mr Stokes wants to wrest control of ConsMedia because of its lucrative pay TV assets.

ConsMedia has a 25 per cent stake in pay TV firm Foxtel and 50 per cent of Premier Media Group, which produces the Fox Sports channels.

Seven in July upped its stake in ConsMedia to 19.91 per cent, from 18.32 per cent, just below the maximum allowed before a formal takeover must be declared.

At about the same time, ConsMedia deputy chairman Mr Packer countered by raising his stake in the company by 1.04 per cent to 40.77 per cent.

There is also media speculation that Mr Packer could also be mulling a bid to buy out minority interests in Crown and remove it from the stock market.

Mr Packer already owns 36 per cent of Crown and would need at least another $4 billion to buy the rest.