$150m trade in James Packer's ConsMedia fuels speculation about rival Kerry Stokes Page: UPDATE: Nick Tabakoff, Clive Mathieson | July 08, 2009
Article from: The Australian A $150 MILLION trade in James Packer's Consolidated Media Holdings has triggered speculation Kerry Stokes may be muscling in on his fellow media mogul.
Speculation swirls: Consolidated Media Holdings chairman James Packer. Picture: AP A single parcel of 60 million ConsMedia shares, representing 8.7 per cent of the company, changed hands today at $2.50 a share.
The trade was made through Southern Cross Equities. Significantly, the price paid was 15 per cent above the existing share price, suggesting the buyer has strategic interests in the business.
Mr Stokes has quietly built up a 4.9 per cent stake in ConsMedia, owner of a 25 per cent interest in pay-TV group Foxtel and 26.7 per cent of online jobs group Seek.
Market sources said Mr Stokes, who is executive chairman of the Seven Network and chairman of West Australian Newspapers, could be behind today's trade, which would lift his stake to about 13.6 per cent.
A broker, who declined to be named, said: “I think the buyer was Stokes and the seller was Packer or Perpetual, but I am leaning towards Packer because that would have been all of Perpetual’s line and they are hardly likely to sell everything in one trade.
“Stokes has money burning a hole in his pocket and he loves the media, and Packer hates the media, so you have got a cashed up and willing buyer and a willing seller.”
Mr Packer's private family company owns 37.9 per cent of ConsMedia. The other big shareholders are the Commonwealth Bank with about 13 per cent and Perpetual with 10.5 per cent.
Amid a flurry of market rumours, there is also speculation that Mr Packer may be either increasing his stake or is one of the sellers, along with Perpetual, to Mr Stokes.
Officials for Mr Stokes refused to confirm or deny the billionaire's interest.
ConsMedia also has a 50 per cent interest in the Premier Media Group, which owns of pay-TV channels including Fox Sports. It also holds a miniscule stake in PBL Media, the owner of the Nine Network and the ACP magazine stable.
Shares in ConsMedia were up 31 cents, or 14.03 per cent, at $2.52 by mid-afternoon in a weaker market overall, with the benchmark S&P/ASX 200 index down 1 per cent.
