Is Kerry Stokes poised to launch a takeover offer for James Packer’s Consolidated Media? Economy Roundup

Shares in James Packer’s Consolidated Media have jumped almost 5% after the company revealed that Kerry Stokes’ Seven Network has requested a copy of Consolidated Media’s share register.

The market has interpreted the move as a signal Stokes is about to launch a takeover for the company.

In July, Stokes’ Seven Network launched a surprise raid on Consolidated Media, amassing a stake of around 19% in the company. Packer responded by spending around $25 million to increase his personal stake from 37.9% to around 41%.

Stokes is believed to be very keen to get Consolidated Media’s pay television assets, including a 25% stake in Foxtel and a 50% stake in pay TV content producer, Premier Media.

Shares trend higher

The speculation around Consolidated Media has helped the local market bounce back somewhat after a lackluster week.

The benchmark S&P ASX 200 was up 35.2 points or 0.8% at 12:00 AEST. Shares in ANZ rose 1.4% to $21.48, while Commonwealth Bank also had a good morning, rising 1.6% to $45.63. Financial services group AMP also had a reasonable morning, with shares up 1.3% to $6.31.

The Australian dollar moved higher to just under US84c.

The more positive mood on the local market reflected a better night on Wall Street, where shares snapped a four-day losing streak on the back of better-than-expected results from retailers including Costco Wholesale and Target Corp.

The Dow Jones Industrial Average was up 0.69%, while the Standard & Poor’s 500 Index was up 0.85%. The technology-focused Nasdaq Composite Index was 0.82%.

Babcock & Brown Infrastructure strikes deal with lender

Back home, the big corporate news came from embattled infrastructure company BBI, which said it is in ongoing talks with a potential cornerstone investors who could help the company deal with its $1.9 billion debt load.

“The terms of a transaction with the potential cornerstone investor have been discussed (although the structure and details of any such transaction are not yet finalised),” the company said.

“A comprehensive recapitalisation on the terms discussed requires the consent of existing lenders and BBI has approached the lenders to obtain their consent to the recapitalisation.”

G20 urged to keep stimulating

Overseas, the members of the G20 will meet over the weekend to discuss the best way to nurture the fledgling global economic recovery. The big question is: when should the huge stimulus programs in place around the world be withdrawn?

Most leaders are urging caution.

“I believe we can be confident about our prospects for 2010. But there are still uncertainties and risks that we have to confront,” British finance minister Alistair Darling, the meeting’s host, said.

“And the biggest risk is to think that the job’s done – that recovery is guaranteed. No country can be complacent – we’ve got to see this through.”