Fed: James Packer set to lead Packer businesses

AAP General News (Australia)
12-27-2005
Fed: James Packer set to lead Packer businesses

By Brendan Swift

SYDNEY, Dec 27 AAP - James Packer is set to complete a long business apprenticeship
by taking control of his father's sprawling media and gambling empire after the death
of Kerry Packer last night.

Commonwealth Securities senior analyst Craig James said the Packer's Publishing & Broadcasting
Ltd (PBL) had a strong succession plan in place with James playing a growing role in the
firm during the last several years.

"PBL has had detailed succession plans in place so while this is a sad loss and a shock
for the company clearly it will be business as usual," he said.

As Kerry's long-running battles with illness grew during the 90s, James steadily assumed
greater responsibility within PBL, becoming managing director in 1996 before assuming
the executive chairmanship in 1998.

But Kerry was never far from the company he first chaired in 1990, taking the post
of PBL deputy chairman in June last year in a move many saw as reasserting his role in
the firm's operations.

However, former PBL chief executive Peter Yates, who resigned and was then replaced
by former journalist John Alexander in last year's management reshuffle, said James was
now primed to run PBL.

"I know how well Kerry has prepared James for his new challenge," he said.

"PBL is very fortunate to have such a clear and long-term succession planning process in place."

PBL employee and trusted Packer adviser Lynton Taylor said James and other businessmen
such as Mr Alexander would continue to lead PBL.

However, Mr James said the death of the man who built PBL into one of Australia's most
successful media companies could still see an an initial five or 10 per cent fall in PBL's
share price when markets open tomorrow.

"But once it's clear who will be running the company from here on and what role James
Packer wants to take in the company ... PBL's share price will rise once more certainty
becomes available," Mr James said.

Advertising guru and Packer family friend Harold Mitchell says James Packer is ready
and able to take the reins of the family empire.

Mr Mitchell said James was tough and clever, and would quadruple the business.

"James Packer, well known of course but always the son of Kerry Packer - I can tell
you that he's a tremendous fellow," Mr Mitchell, chairman of Mitchell & Partners, Australia's
largest media buyer, told ABC radio.

"He's financially literate, he's tough, he's strong, he's clever.

"It's never easy to be the son of a great man, and James has had to live with that
but, as I said to James, he'll take it on and he'll double it, quadruple it.

"He's got a great sense of being an Australian, of running business.

"He's taken these businesses to new levels himself because he's the one who's been
involved in the gaming enterprises, close to the media businesses of course, because he's
grown up with all of that.

"He's tough and you need to be.

"He'll also look more to the world, I suspect, than Kerry," Mr Mitchell said.

Prior to joining PBL, James worked at the Packer's Nine Network and the family-company
Australian Consolidated Press Ltd, as well as the Rothschild merchant bank in London.

However, his business apprenticeship hit a major obstacle when he introduced PBL and
Rupert Murdoch's News Corp to the One.Tel business, which cost the firm's about $1 billion
when the telco collapsed in 2001.

Kerry Packer's empire encompassed the Nine Network, magazines such as the Australian
Women's Weekly, Crown Casino and interests in pay TV provider Foxtel and internet venture
ninemsn through PBL and the Packer's private company Consolidated Press Holdings Ltd.

AAP bcs/evt/br

KEYWORD: PACKER SUCCESSION

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