Monday, February 21, 2011

West Australian Newspapers offers to buy Seven Media Group

ONE of media operator Kerry Stokes's media interests, West Australian Newspapers (WAN), has offered to buy another of his interests, Seven Media Group, for an enterprise value of $4.085 billion. 
 
WAN said it would sell over $1 billion in new shares to help fund the transaction.

The new company would be called Seven West Media and would remain listed on the Australian Securities Exchange as the biggest Australian domiciled listed media company.

Seven Media Group is owned by the Stokes-controlled Seven Group and funds affiliated with private equity firm Kohlberg Kravis Roberts & Co and members of Seven's management.

Seven Group also is WAN's biggest shareholder, holding 24.3 per cent of the publisher.

Mr Stokes said under the proposed deal he would remain chairman of Seven Media and what would emerge would be a diversified media company involving newspapers, magazines, internet, television and multi-channelling.
Mr Stokes said the new company would not see a merger of news rooms or a reduction in media competition, and that there were no plans for retrenchments of current employees.
"I think you will see two news rooms competing just as you do now.
"It's important they retain their competitiveness," Mr Stokes said.
Seven West would include all of WAN, including The West Australian, the state's biggest newspaper, and radio licences, all of Seven Network and all of Pacific Magazines.

Additionally, Seven West would own 49.9 per cent of Community Newspaper Group, 50 per cent of Yahoo!7, and 33 per cent of Sky News.

The independent directors of WAN said they would unanimously recommend shareholders approve the transaction.

Doug Flynn, one of WAN's independent directors and a former News Corp executive, said the takeover was an opportunity to transform WAN into a diverse media business.

"While WAN occupies an attractive niche as the leading media business in the West Australian market, it must look to the future," Mr Flynn said.

"Combining these two businesses will create a substantial and diverse combination of traditional and new media platforms to enhance WAN's ability to compete effectively in the ever changing media landscape."

WAN would buy Seven Media from Seven Group with $1.08 billion worth of its own shares, $250 million of convertible preference shares, $650 million repayment of a Seven Media loan owed to Seven Group and $2.104 billion of assumed external net debt.

WAN will raise $461 million through a placement of shares to KKR, $653 million from an entitlement offer of new shares and a further $40 million from a general public offer of shares.

The proceeds from the equity raising will be used to repay $450 million in debt, repay the Seven Group loan and pay transaction costs of $45 million, with the balance to be used for general corporate purposes.

The takeover is subject to Australian Competition and Consumer Commission approval.

Shareholders will vote on the deal on April 11.

As part of the transaction, Seven Group will sell its interest in WAN and not take up its entitlement under WAN's entitlement offer.

Seven Group then will receive $1.081 billion in WAN shares, equivalent to 29.6 per cent of the company.

Seven Group also would receive $250 million of the convertible shares, resulting in a total investment in WAN of about $1.33 billion.

WAN's existing board membership would remain and Seven Media's chief executive, David Leckie, would become Seven West's CEO.

Seven Group's chairman, Mr Stokes, said the transaction would transform WAN into the biggest listed Australian-domiciled media company.

"This transaction is an opportunity for Australian shareholders to gain exposure to some of the best media assets in Australia with the combined business leveraging the highly successful management teams," he said.

He added that Seven Group's commitment to the company was apparent because it will increase its interest in WAN at a higher price per share than WAN shareholders will pay under the entitlement offer.

Thursday, February 17, 2011

Bikie murder was ridiculous act: judge

A former Rebels bikie murdered a rival Bandido in a "ridiculous" act of retaliation over a fight that had nothing to do with him, a judge says.

Ross Brand, 51, was killed when John Russell Bedson, 27, fired at least six shots into the Geelong clubhouse of the Bandidos motorcycle club on October 22, 2008.

A second man, Paul Szerwinski, was injured after being shot in the wrist and upper thigh.
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Neither Bedson nor his victims had any involvement in a fight that sparked the shooting, the Victorian Supreme Court heard on Thursday.

The fight at the Geelong Cup races earlier that day was between a man nominated to become a Bandido and a man from a second motorcycle club Bedson was involved with, Death Before Dishonour (DBD).

Bedson's brother Derek, who did not witness the fight, became incensed when he heard that the DBD member had been arrested and the Bandido wasn't, the court heard.

John Bedson was not at the races but the brothers later agreed to shoot up the Bandido clubhouse.

On Thursday, Justice Elizabeth Curtain said John Bedson had no business being involved in the fight.

"He acted on this day because he perceived retaliation was necessary," she said.

"Given the consequences, that was a totally ridiculous proposition.

"The reality is in truth it was never his fight, were it not for his association with the Rebels and Death Before Dishonour."

Justice Curtain said the tragedy of the case was that his victim also had nothing to do with the fight at the races.

"He went and shot at people who themselves had nothing to do with it at all," she said.

"If it weren't so tragic it would be utterly ridiculous."

Justice Curtain said if not for the angry response of Derek Bedson, who pleaded guilty to manslaughter, the shooting would not have happened.

Derek Bedson's lawyer, Peter Chadwick, SC, said his client was intoxicated after drinking all day at the races and became angry after hearing about the fight.

John Bedson's lawyer Ian Hayden said his client had ended his association with both motorcycle gangs and had made inquiries about having a DBD tattoo on his cheek removed, but was told this could not happen in jail.

He said his client was remorseful for the killing and had acted out of "misguided loyalty".

The pre-sentence hearing will continue at a later date.

Sunday, February 13, 2011

Australia's top lender sees $3.1B half-year profit

The Commonwealth Bank of Australia Ltd., the nation's largest lender, reported Wednesday a 5 percent rise in half–year net profit to 3.05 billion Australian dollars ($3.1 billion), but said credit demand remains subdued and funding costs are increasing.

Cash profit for the six months to Dec. 31, the bank's preferred measure, was up 13 percent on the previous corresponding period to AU$3.3 billion.

Analysts had forecast that both cash and net profits would be around AU$3.2 billion.

The results are driven by falls in bad debt provisions since the global economic crisis, down from AU$1.4 billion in the second half of 2009 to AU$722 million in the latest six months.

Australia has a tight regulatory regime in the financial sector and its banks proved resilient to the global downturn.

Chief executive Ralph Norris said all divisions of the business performed well in a period characterized by subdued credit demand and intense competition for deposits.

"Underlying credit growth remains subdued with both consumer and corporate confidence fragile," Norris said in a statement.

"Competition is intense, with depositors benefiting from historically high margins, while wholesale funding costs also remain at elevated levels," he added.

The bank's total average interest earning assets, or the money it lends, grew by AU$26 billion to AU$574 billion.

Chief financial officer David Craig said funding costs would continue to rise for another year.

"The funding costs will continue to rise, but probably not at the same pace as they have been rising," he told reporters.

Demand for home loans remains robust, Craig said.

But business lending remains subdued, and the impacts of record flooding and cyclones along the Australian east coast since November will not help, he said.

The bank's shares rose almost 3 percent in early trading on the news Wednesday to AU$55.36.

The result drove the Australian bourse higher in early trading. The benchmark S&P/ASX200 index rose almost a percentage point to 4,925.4, while the broader All Ordinaries index had a similar rise to 5,015.3 points.

Monday, February 7, 2011

Wollongong City ready to take on best at Australian Surf Rowers League championships

They might not win many races, but Wollongong City's surf boat crews are looking forward to hosting this weekend's Australian Surf Rowers League championships.

City will be represented by six crews in open men, open women, reserve men and under 19 men.

Boat sweep Ken Lawrence said City's hard-working members had spent countless hours preparing for the annual carnival.

"Our crews have had some good results this season and we'll be going out there to race to the best of our ability this weekend, but the main aim is to run a good carnival and make sure everything goes smoothly," Lawrence said.

"Having said that, one of our reserve crews is going well and we expect some big things from them.

"All the top crews from Australia and New Zealand will be there and there are plenty of good local crews involved. Austinmer and Bulli will provide stiff opposition in the open men, Corrimal, City and Austinmer are strong in the reserves and Helensburgh-Stanwell Park have a very good under 23 women's crew."

Close to 2000 visitors will flock to Wollongong for the carnival and motels and camping grounds in the region are expected to be filled by Thursday night.

"There's certainly going to be lots of boats and cars and trailers around town," Lawrence said.

"It'll be a good boost for the local economy."

Big seas forced last year's corresponding event to be moved to Bulli and organisers are crossing their fingers a similar situation doesn't arise this weekend.

"We're praying for Huey to be kind to us this year," Lawrence said.

"A nice four-foot swell would be beautiful. Hopefully it won't be like last year."

Races get underway tomorrow morning before the event wraps up with Sunday's finals.

Tuesday, February 1, 2011

Miranda Kerr rated most desirable Australian girl in AskMen's top 99

MIRANDA Kerr has been rated the most desirable Australian girl on the planet by readers of a men's lifestyle website.

The supermodel was voted number five in AskMen.com's Top 99 Most Desirable Women list, which was led by Gossip Girl star Blake Lively.

Actresses Mila Kunis and Sofia Vergara and model Selita Ebanks made up the remaining top five places in the annual poll.

Other Australian honorees included Abbie Cornish (33), Rose Byrne (51), Rachael Taylor (65) and Natalie Imbruglia (87).

But models Megan Gale, Emily Scott, Jennifer Hawkins and singer Sophie Monk failed to make the cut after featuring in last year's poll.

Other beauties also missing this year are Jessica Simpson and Heidi Klum.

More than five million votes were cast after readers were asked to rank the women who best represent their ideal girlfriend or wife.

Kerr jumped five places from number 10 since the last annual survey, during a year in which she was mostly pregnant.

The top ten are:

1. Blake Lively

2. Mila Kunis

3. Sofia Vergara

4. Selita Ebanks

5. Miranda Kerr

6. Cheryl Cole

7. Scarlett Johansson

8. Katy Perry

9. Anne Hathaway

10. Jessica Pare