Seven Network Westrac deal EGMs

May 3, 2010

Here is a package of highlights from the $2 billion Seven-Westrac merger proposal which has now been approved by the Federal Court.

Federal Court submission

Our Seven affidavit to the Federal Court objecting to aspects of the scheme. See Justice Jacobson's final judgment.

Edited highlights from bootleg audio from the shareholder EGMs held on April 20

Introduction to the meeting from Peter Ritchie

Shareholder asks how will it all work

Another shareholder talks about the confusing valuation

Strong debate between Stephen Mayne and the board on a range of issues

A shareholder asks what would happen to the company if the Caterpillar dealership franchise was terminated?

Stephen Mayne asks why Stokes paid $100 million for Westrac property?

Another shareholder questions the value of the deal

Shareholder wants to know what would happen if Kerry Stokes walks out on the deal

TELYS3 meeting

All questions by Stephen Mayne

The quality and value of these securities is reduced

Will you be treating both classes of shareholders equally?

Please clarify these bullish "record high" share price claims


Board Renewal
The AFR reported the following on Wednesday, April 21:
“Earlier this month, sources close to the negotiations between ACE and fund managers said Mr Stokes had indicated Mr Ritchie and Ms Boling, who have been Seven directors since 1991 and 1993 respectively, would resign after the Seven-WesTrac merger was completed on May 13.”

When I asked Peter Ritchie about this at the meeting, he said: “None of us (the three independent directors) have plans to resign.” Read the full transcript.

Meeting procedure
It was disappointing that the meeting was so heavily influenced by an executive director in the form of Bruce McWilliam. Seven failed to webcast the meeting, provide a transcript online and even attempted to ban any individual shareholder from recording proceedings. As a message for future scheme meeting votes, it would be appropriate for the court to sanction Seven's conduct and lay out a best practice model.

Read this transcript that demonstrates Mr McWilliam's regular interference and sometimes aggressive behaviour.

Other Media


774 ABC Melbourne - discussing the Seven Network EGM on Wednesday April 21, 2010.

RRR Melbourne - talking with The Breakfasters about the Seven Network EGM on Wednesday April 21, 2010.

The Weekend Australian

Seven Network's waiting game
by Susannah Moran, April 24, 2010.


Mayne: Why the judge should make further inquiries on Seven deal
Wednesday, April 21

The final insult: Stokes refuses to attend Seven EGMs
Monday, April 19

Stokes crafts a sensible compromise, now for the new directors

Tuesday, April 13


Sky Business View
- discussing the Seven network EGM on Friday, April 23, 2010.

Lateline Business
- Seven shareholders vote for merger, April 20, 2010.