ConsMedia shares fall 7.5% after truce

Shares in Consolidated Media Holdings Ltd slumped more than nine per cent after
Kerry Stokes and James Packer called a temporary truce in their battle for control
of the pay-TV investor.

Mr Stokes' Seven Network, which holds 19.9 per cent of Cons Media after recent share
raids, has pledged not to acquire any further interest for the next 12 months.
In return, two Seven representatives have seats at the Cons Media Board.
Seven's standstill agreement was reached with Cons Media's 40.8 per cent
shareholder, Mr Packer's Consolidated Press Holdings Ltd, announced to the market
after trading closed on Thursday.
On Friday, Cons Media stock tumbled 30 cents or 9.04 per cent to $3.02 but Seven
Network gained 13 cents, or 2.11 per cent, to $6.29.
Cons Media shares have risen sharply since Mr Stokes lifted his interest to 19.91
per cent, just below the maximum allowed before a formal takeover must be declared.
Mr Stokes was expected to launch a takeover or at least seek a board seat at Cons
Media.
He was rumoured to be interested in having a say in any break up of lucrative pay TV
firm Foxtel, partly owned by Cons Media and majority owned by Telstra Corp.
Cons Media has a 25 per cent stake in Foxtel and 50 per cent of Premier Media Group,
which produces the Fox Sports channels.
As Mr Stokes launched his raids on Cons Media, Mr Packer countered by raising his
stake in the company by 1.04 per cent to 40.77 per cent.
Cons Media also sold its 27 per cent stake in online job ads group Seek Ltd for $441
million, 54 Park Street Sydney for $50 million and said it would buy back 10 per
cent of its issued capital.
Seven said in a statement on Thursday it was supportive of Cons Media's recent
buy-back of shares but would not be selling shares into the buy-back.
Mr Stokes son, Ryan Stokes, and senior lieutenant Peter Gammell will join the Cons
Media board.
Senior Packer adviser Ashok Jacob will also join the Cons Media board.