Packer not keen to do a Kerry, by Miriam Steffens - The Sydney Morning Herald - 29th October 2008

James Packer has hosed down speculation that he may emulate his late father Kerry and buy back the family's media empire at a bargain price, saying times have moved on.

He urged shareholders yesterday to place a long-term bet on his casinos despite tougher market conditions over the next year, particularly in Las Vegas.

While his exit from PBL Media marked "an emotional day for a whole series of reasons", Mr Packer said, his father's coup to buy out Alan Bond in the late 1980s had happened at a time when traditional media faced fewer challenges than today.

"Whilst I would never say never, I think it is a different world where free-to-air television and magazines occupy a different place."

Addressing shareholders at the Consolidated Media Holdings and Crown annual meetings in Melbourne a day after he cut his family's ties with the Nine Network and ACP Magazines, Mr Packer seemed eager to move on. He said he was "confident" about Crown's casino expansion, despite a share price that has halved this year on concerns about its prospects in a global downturn.

His top lieutenant, John Alexander, praised the prospects of pay TV. With CMH's remaining stakes in Foxtel and Fox Sports, "the story and growth of pay TV in Australia is essentially the story of CMH," he said, adding he could make "little useful commentary" on the traditional media businesses of PBL Media.

But the meetings were marred by controversy over the re-election of Mr Alexander, who could have been voted off Crown's board without Mr Packer's votes.

Excluding Mr Packer's support, only 49.7 per cent of votes were cast in favour of Mr Alexander, who pocketed $19 million from the Packer empire last year.

Mr Packer defended his deputy, saying Mr Alexander had received a "lot of unfair publicity" over problems at PBL Media.

The protest vote came after the corporate governance adviser Risk Metrics recommended fund managers apply a veto because there were too many "insiders" of the Packer camp on the board.

Shareholder questions were also asked about the need for a "big gorilla board" of 12 directors at a shell company like CMH. Mr Alexander said the board would start reviewing its size "probably by the end of the year".

Asked about the collapsed $3.3 billion buyout of CMH by Lachlan Murdoch this year, Mr Alexander said the board had never tried to change the price. "They couldn't secure full funding," he said, without explaining why Mr Packer wanted to sell a bigger stake than initially advised, which scuttled the deal.

CMH shares closed 6c up at $2.14 yesterday, less than half the value of Mr Murdoch's $4.80 offer. Shares of Crown closed at $6.30.

The iconic Las Vegas strip is on track for its biggest annual fall since the Nevada Gaming Control Board started compiling figures in the mid 1980s.

Admitting the coming months would be "challenging, particularly in Las Vegas", Mr Packer said the next year would centre on refurbishing Crown Melbourne and Burswood, bedding down the acquisition of the Cannery Casino Resorts in North Las Vegas and opening the City of Dreams, its second casino in Macau.

(Credit: The Sydney Morning Herald)

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