Ink hardly dry and big guns Packer and Stokes fire shots

SYDNEY - Billionaires James Packer and Kerry Stokes have made the first moves in what is set to be the biggest shakeup of Australia's media in 20 years.

Packer, Australia's richest person, agreed late yesterday to sell half his television and publishing assets to CVC Asia Pacific for A$4.5 billion ($5.15 billion). Stokes, who controls the nation's second-largest TV broadcaster Seven Network, bought an 8.4 per cent stake in West Australian Newspapers (WAN), publisher of Perth's only daily, and is seeking more shares.

The two men are taking advantage of changes to ownership laws approved yesterday that allow foreigners to take control of Australian media companies and proprietors to own two forms of media in one city.

Communications Minister Helen Coonan has yet to say when the reforms will come into effect.

John Fairfax, publisher of the Sydney Morning Herald, and radio network Austereo jumped on speculation they may be the next targets.

The speed at which Packer and Stokes have moved shows the importance of getting in early, said media analyst Peter Cox.

Under the old laws, which limited companies to owning one form of media in a single market, Stokes, who owns a television station in his hometown of Perth, was prohibited from controlling the newspaper.

"Stokes doesn't want to see it go before he can take it over, that's why he needs to move now," said Cox.

"The high price [A$11 a share] paid for WAN has implications across the print media sector," said one analyst.

- BLOOMBERG