Australia to scrap ownership laws

AUSTRALIA is set to abolish media ownership rules which will allow newspaper publishers including Rupert Murdoch to buy television networks.

It will also pave the way for overseas investors to control print and broadcasting companies.

Proposals were released in Canberra yesterday by the Australian Government to undo a 19-year-old ban on media mergers that prevented Murdoch's News Corporation buying a television network and the Packer family from taking over newspaper publisher John Fairfax Holdings Ltd.

Independent News & Media has extensive interests in Australia across print, outdoor advertising and radio and the change in the law could also pave the way for IN&M to expand further in that market.

Greg Fraser, media analyst with Shaw Stockbroking in Sydney said "anything becomes possible if you've got a big enough cheque".

"It's hard to predict who might take over who and why," he said.

If the restrictions go then consolidation among the nation's five listed newspaper publishers, seven radio stations and eight commercial television broadcasters is anticipated. This would be a natural follow on as companies seek a bigger slice of the A$10.4 billion (€6.3bn) advertising market.

Shares of Fairfax, publisher of the Sydney Morning Herald and Melbourne's Age, rose 2.8%, while shares in Ten Network Ltd, Australia's third-ranked television network, rose 3.2% in anticipation of major jockeying for position among the top players in the coming years.

Analysts said the Sydney-based Fairfax Group was a likely takeover target if the media ownership restrictions were scrapped.

Publishing & Broadcasting Ltd, controlled by James Packer following the death of his father Kerry, is a potential bidder, said money manager Craig Young.

"It just depends on what the big guys want to do, it depends on what Rupert [Murdoch] wants to do and what James [Packer] wants to do," said Mr Young.

Kerry Packer bought a 15% stake in Fairfax in 1996, betting media ownership curbs would be loosened. He sold the shares in 2001, frustrated by the lack of change.