Raid over Consolidated Media Continues for the Second Day

Submitted by Jim Thesiger on 10 July, 2009 - 06:44

Seven Network (SEV) is expected to announce itself as the second largest stockholder of Consolidated Media Holding (CMJ) controlled by James Packer which came under an unexpected raid from Seven Network on Wednesday. Kerry Stokes backed Seven Network has acquired an additional 2.84 percent of Consolidated Media shares on Thursday taking its total amount of shares to 18 percent since the raid began. Seven Network managed to buy out around 70 million or 10 percent of the Consolidated Media shares on Wednesday of which 60 million was purchased through a single crossing.

Thursday was another busy day for Consolidated Media in the stock market where around 25 million of its shares changed hands. ConsMedia shares closed the day at $2.61, gaining 3 percent or 8 cents.

Seven Network will have to announce its precise stake size today because as the law makes it mandatory for a company to go for the substantial shareholder declaration within 48 hours after it goes through a significant level of change in its assets. Currently Seven Network is acquiring a stake of 4.8 percent, which is slightly below the level (5 percent) where a company is forced to go for a substantial shareholder declaration according to the law.

The market analysts firmly believe that soon Mr. Kerry Stokes will achieve control over a considerable portion of Consolidated Media shares which will require him to go for the bid for full take over.

James Packer to resist a possible takeover of Consolidated Media

Previously analysts claimed that Kerry Stokes is eyeing for a full take over of Consolidated Media as James Packer, the owner of ConsMedia admitted that he is more interested to shift his focus from the media industry to the gaming sector. However, according to some other source, Mr. James Packer is determined to hold his assets in the Consolidated Media and might turn down a bid from Seven Network for a full takeover of the company.