Wan Moves For Peace With Stokes
The Age
Friday April 25, 2008
WEST Australian Newspapers is offering an olive branch to Kerry Stokes, hoping to avert another battle after the Seven Network boss narrowly failed to topple the Perth publisher's board.
WAN chairman Peter Mansell reiterated yesterday there would be no room for Seven Network executives on its board, but indicated that the publisher could expand the board and ask Mr Stokes to send a representative who did not work for the broadcaster. WAN has argued that Seven, its biggest shareholder with a 19.4% stake, was a direct competitor for advertising dollars. "We have to find a way that Seven feels that it's fairly heard because it's made this investment . . . we will have to engage with them," Mr Mansell said. "There is a lot of space between having Seven executives and no representation at all, and we've got to find something in that space." He said it was too early to be any more precise, but the board would seek talks with Mr Stokes, or his right-hand man, Peter Gammell. Sources close to WAN said a compromise could include one of Seven's independent directors, such as Peter Ritchie or Dulcie Boling. Other names mentioned were former Macquarie Group heavyweight Warwick Smith or WA's previous Chamber of Commerce and Industry head, John Langoulant, who both work for Mr Stokes' private company, Australian Capital Equity. Analysts also mentioned media buyer Harold Mitchell, who is close to Seven and had publicly challenged WAN's argument that the two sides were advertising rivals. But sources close to Seven said it was doubtful Mr Stokes would accept such a compromise, saying the broadcaster wanted direct influence on the board. Seven had invested $479 million in the publisher and wanted to make sure it could strategically benefit. "He really wants himself and Mr Gammell on the board," said media analyst Peter Cox, tipping that Seven would be back for a second-round attack within six to 12 months. Mr Stokes would not comment about his plans, but said in a statement it was "a pity that the resources of Seven and WAN could not have been used to mutual advantage". He said Seven would "consider our investment in WAN and what future actions are appropriate".
© 2008 The Age
