Just Lunch, It Seems, For Stokes At Fairfax
Sydney Morning Herald
Saturday October 18, 2008
THE Seven Network boss, Kerry Stokes, lunched with the chairman of Fairfax Media, Ron Walker, and its chief executive, David Kirk, at the publisher's headquarters yesterday, discussing the industry as media companies face tighter conditions in a looming advertising recession.
Mr Stokes toured the newsroom of the The Sydney Morning Herald with Mr Walker, speaking briefly with senior editorial staff.When asked if he was planning to invest in the publisher, Mr Stokes said: "I invest in the paper every day." Pressed on whether he had any intention of buying shares in Fairfax, Mr Stokes said: "I love reading the paper. And I love coming here to see the new premises."Fairfax Media shares have fallen 57 per cent this year, closing at a 15-year low of $2.02 yesterday, with its market value having shrunk to $3.1 billion since January. Seven Network's shares have also more than halved, closing yesterday at $5.65.Mr Stokes, who owns 22 per cent of West Australian Newspapers, would not be drawn on whether the two media bosses were working on a deal. Asked if there was going to be any co-operation between the two companies, next door to each other in Pyrmont, Mr Stokes said: "We're always good neighbours."Mr Walker said they planned to discuss "football, Caterpillar tractors, all those things that men talk about together over lunch". A Fairfax spokesman, Bruce Wolpe, said it "would be a mistake to read too much of a business purpose in the lunch". Mr Walker has invited other business leaders to Fairfax before. He gave the Westfield boss, Frank Lowy, a tour of the premises last month.Media analysts are still waiting to see what Seven will do with its $1.1 billion in cash left from Mr Stokes's media sell-down to the private equity firm, KKR, in late 2006. The broadcaster had been considered a bidder for Fairfax before the publisher merged with the John B. Fairfax-controlled regional publisher Rural Press last year, boosting its size.Seven has invested $540 million in West Australian Newspapers over the past year, losing a battle to oust its board. Mr Stokes and his right-hand-man, Peter Gammell, were eventually appointed as directors last month.
© 2008 Sydney Morning Herald