News Corp executives take INL helm

By ELLEN READ and NZPA

The appointment of two News Corporation executives to key positions at media giant Independent Newspapers has strengthened Rupert Murdoch's control over its future.

However, INL is refusing to say how the shake-up affects its plans to merge its publishing and broadcasting assets.

The former head of Australia's Foxtel television, Tom Mockridge, will take over as chief executive from March 1, and Mr Murdoch's long-time righthand man, Ken Cowley, will replace Sir Colin Maiden as chairman.

The appointments follow the sudden death of chief executive Mike Robson last month.

The man who has been filling Mr Robson's shoes, Rick Neville, will become managing director of publishing.

Neither of the new appointees was available to talk yesterday. Analysts believe Mr Neville will be left to run INL's newspapers and magazines, and Mr Mockridge will stitch INL together with Sky TV and then integrate Sky into Mr Murdoch's Sky Global Networks.

Mr Neville denied the appointment was a sign that broadcasting would dominate the firm's operations in the future.

"Both are at different stages of maturity," he said. He also denied that the appointments were a sign News Corp boss Rupert Murdoch was unhappy with the firm's performance.

"A fair interpretation is that they're showing more interest in this part of the world."

Mr Neville would not comment on the implications of the appointments for the mooted INL/Sky merger, nor would he admit to any disappointment at being passed over for the top job. "My main strength is in publishing. I think I've got a very attractive position and the board has given me a lot of authority."

In August, INL put on hold its plans to merge broadcasting and publishing.

INL is 49.3 per cent owned by Rupert Murdoch's News Ltd. Telecom New Zealand also holds a 10 per cent stake. INL, in turn, holds 47 per cent of pay-television operator Sky Television.

Mr Cowley has been a director of INL since 1990 and was previously chief executive of News Ltd, the Australian division of News Corp, from 1979 to 1997.

He has been a director of News Corp since 1985 and serves as a director of a number of other companies.

Mr Mockridge, who began his journalism career at Taranaki's Daily News, was chief executive of Foxtel from 1997 to 2000. He is a senior executive with News Corporation's Asian subsidiary Star TV.

He has been a director of News Ltd since 1995, Sky Television since 1998 and INL since early last year.

UBS Warburg analyst David Lane said the appointment of Mr Mockridge, with his strong TV background, showed INL was interested in developing its relationship with Sky.

Other analysts, who did not wish to be identified, said the appointment appeared to put the merger of INL and Sky TV firmly back on the agenda.

One said the involvement of the two Murdoch men signalled an intensification of the relationship with News.

He said Mr Mockridge's role was to ensure the value of INL's investment in Sky was maximised and his background in Foxtel was a big advantage.

"There is a clear emphasis on the development of television in terms of the appointment and INL is trying to develop as a multimedia company."

INL publishes many New Zealand papers including the Dominion, Evening Post, the Press, and Waikato Times.

Its profit for the year to June 30, 2000, rose 14.5 per cent to $34.6 million.