Stokes seeks to swing axe at newspaper
Seven Network Ltd, the largest shareholder of West Australian Newspapers Holdings Ltd, is seeking the removal of five board members from the publisher of Perth's only daily newspaper because of poor performance.
Billionaire Kerry Stokes, Seven's chairman, requested a shareholder meeting to oust the non-executive directors and is "appalled" by West Australian News' performance, which prompted a cut in the Perth-based company's dividend, Sydney-based Seven said yesterday in a statement to the Australian Stock Exchange.
Stokes, 57, nominated himself and fellow executive Peter Gammell to stand for election to the West Australian News board, adding Seven isn't seeking control of the newspaper group. West Australian News, which said Seven's representatives on its board may have "significant conflicts of interest", will pay a 21 Australian cent dividend for the first-half, compared with 30 cents a year earlier.
"The issue is whether a competing organization - despite its shareholding - should have representation on the board," said Rob Patterson, who manages the equivalent of $3.8 billion at Argo Investments Ltd in Adelaide and owns shares in West Australian Newspapers. "We shall have to see both proposals."
Seven shares rose 33 cents, or 2.7 percent, to A$12.80 at the close in Sydney, paring this year's loss to 0.2 percent. West Australian News stock rose 12 cents, or 1.1 percent, to A$10.87.
Seven said yesterday West Australian Newspapers failed to deliver on promises to improve the production process after spending A$210 million investing in new printing equipment. Advertising sales are threatened by a failure to boost circulation, it added.
Agencies
(China Daily 02/26/2008 page16)
