Kerry Stokes and James Packer face off in battle over Consolidated Media

It’s on! James Packer has responded to Kerry Stokes’ raid on Consolidated Media by spending almost $25 million to increase his stake in the company.

Packer told the Australian Stock Exchange this morning that he has lifted his stake in Consolidated Media from 37.9% to 39.3%. The company owns a 25% stake in Foxtel and shares in online classified sites Seek and television producer Premier Media Group

The purchase of 9.68 million shares cost Packer $24.8 million and is a direct response to Stokes’ raid on the company on Wednesday.

Stokes’ Seven Network initially spent around $180 million buying Consolidated Media shares, lifting Seven’s stake from just under 5% to around 15%.

Stokes then backed this up yesterday by buying another four million shares, taking his stake to around 18%.

Exactly what Stokes hopes to achieve by buying the stake in Consolidated Media is unclear. Media analysts and commentator say Stokes has his eye on Foxtel, and wants to be part of any deal to sell part or all of the pay television network.

Another theory suggests Stokes could even launch a full takeover for ConsMedia, with some reports suggesting Stokes’ representatives have already sounded out Packer about his willingness to sell his stake.

But the fact that Packer has shored up his own position on ConsMedia’s share registry suggests he is not a willing seller.

Could we about to see a battle of wills – and cash – between two of Australia’s richest entrepreneurs?