Seven Network chief Kerry Stokes speculated to be eyeing CMH
09 Jul 2009
James Packer's Consolidated Media Holdings (CMH), seems to have attracted interest from rival Seven Network chief Kerry Stokes' pay-TV Foxtel.
Stokes has a 49-per cent share of the Sydney-based Seven. Seven's investments include a 23-per cent stake in West Australian Newspaper Holdings Ltd.
Foxtel is speculated to be responsible for a $150 million trade that led to a 14-per cent surge in CMH shares yesterday.
The speculation following the stock surge came on the back of a special cross-trade involving 60 million shares amounting almost 9 per cent of the company – in the afternoon at $2.50 a share.
According to industry insiders the transaction seemed to be a single buyer operation probably involving Seven Network owner Kerry Stokes given his long-term interest in pay TV assets.
The massive trade evoked an immediate price query from the Australian Securities Exchange but CMH, which is held 38 per cent by the Packer family, said it was not aware of any trading or change in its share price.