Consolidated Media Stunned by Unexpected Share Raid

James Packer’s Consolidated Media (CMJ) came under a stunning attack by a $150 million hostile share raid. Seven Network (SEV), a rival of Consolidated Media which is controlled by Kerry Strokes is assumed to be the buyer of the stocks which will allow Seven Network to prevent a takeover of the company. About 8.7 percent of Consolidated Media shares worth of $150 million ($2.50 per share) changed hands yesterday in a price much higher than that time market price of $2.17.

It is assumed that Seven Network is set to own 70 million Consolidated Media shares by the close of the week which will give them the control over 10.1 percent of the company. The Seven Network authority refused to make any comment regarding the recent developments. However, according to some sources, other potential buyers of Consolidated Media stocks including Lachlan Murdoch’s Illyria, Telstra and Bruce Gordon’s WIN Corporation were not involved in the massive transaction that occurred yesterday.

Consolidated Media have seen the biggest transaction in their stocks on Wednesday since the company became independent from Publishing & Broadcasting two years back. More than 84 million shares of the company changed hands with a rise of 14.5 percent or 32 cents in its stock price closing the day at $2.53.

According to experts, the recent development apparently reveals Mr. Kerry Strokes high ambition of taking over two of the most potential enterprises of the pay TV industry: Fox Sports and Foxtel. Consolidated Media owns 50 percent of Premier Media Group which is the producer of Fox Sports channels and also owns 25 percent of Foxtel. In 2002, Seven Network’s own pay TV C7 went out of the business. It is to be mentioned that the unexpected attack came over Consolidated Media 15 months after the company escaped a Lachlan Murdoch’s takeover attempt.