Seven Group, the company controlled by billionaire Kerry Stokes, is seeking permission to buy more shares in Consolidated Media or make a bid, Australia’s market regulator said.
The move signals Mr Stokes’s intention to have a major say in the biggest takeover move currently under way in Australia’s media industry.
Seven, which owns 24 per cent of ConsMedia, is “actively considering acquiring further shares” and has sought a review of a proposal to buy the rest, the Australian Competition & Consumer Commission said on its website.
The informal review of the proposal was lodged by Seven with the ACCC, inviting comments from interested parties to to be submitted to the competition regulator by July 13.
News Corp on Wednesday offered to buy ConsMedia for $2 billion to double its stake in Foxtel, Australia’s biggest pay television operator.
The deal would give the media company controlled by US-based billionaire Rupert Murdoch 50 per cent of the Foxtel pay television network and full ownership of the Fox Sports business in Australia with broadcast rights to Australian Football League and National Rugby League games.
The News offer came on the same day that the company, Australia’s biggest newspaper group, revealed plans for an overhaul that will shrink the number of its east coast divisions from 19 to five, and may see the loss of as many as 1000 jobs. On Monday, Fairfax Media (publisher of this website) unveiled plans to shut two printing plants and cut 1900 jobs over three years as it steps up its transition to a more digital-based future.
Packer backing
Fellow billionaire James Packer, who controls ConsMedia with a 50 per cent stake, has backed Mr Murdoch’s $3.50 a share bid for the company in the absence of a higher offer. Seven said June 20 it was reviewing News Corp’s proposal.
Mr Stokes owns 67 per cent of Seven Group which in turn controls Seven West Media Group, owner of Australia’s most watched free-to-air television network, according to data compiled by Bloomberg.
Mr Stokes is believed to want to remain involved in pay TV, having taken the stake in ConsMedia several years ago.
Seven could not be contacted for comment on Friday evening to confirm whether it would take the proposal further.
If it did, it would involve a full-scale takeover that would be pitted against Mr Murdoch’s News Corp.
Analysts believe that after exiting ConsMedia, Mr Packer would use the cash to pursue rival casino operator Echo Entertainment Group or other gambling opportunities.
Simon Francis, a spokesman for Seven, didn’t immediately return a voicemail message from Bloomberg seeking comment on the statement on the regulator’s website.
ConsMedia and News Corp. each own 25 per cent of Foxtel, while Telstra Corp., the nation’s biggest phone company, holds the remaining 50 per cent stake.
ConsMedia shares fell 0.9 per cent to $3.37 at the close of trading on Friday.
