Buddy, Can You Spare A Dime?

Sydney Morning Herald

Wednesday March 12, 2008

Michael Evans

Michael Evans says it's tough when a Murdoch can't get any cash.

LACHLAN MURDOCH has been a busy chap over recent days in the US as he tries to get someone, anyone, to stump up the cash to keep alive his dream of returning to the Australian media scene.

It can't be easy. Particularly given the global liquidity crunch that we fear must be serious if nobody will lend to a Murdoch.

And with no word of joy at finding replacement funding for his offer with James Packer to privatise Consolidated Media Holdings, we can only hope a busy Lachlan at least managed to squeeze in time to visit his father, Rupert, to wish him a happy 77th birthday yesterday. Particularly as word is Lachlan may be back as soon as this weekend. That long lunch and big cake may have to wait until the readies are sorted.

Still, no time like the warmth of a family birthday party to ask dad for some advice.

Or some spare change.

Wiggles or Hi-5?

There are certain important questions in life that divide us into distinct camps: butter or margarine? Kylie or Da ? The Wiggles or Hi-5?

Into the latter category it now appears safe to place the Nine Network kahuna David Gyngell and the Fairfax Media scrum half David Kirk. The Nine Network and Southern Star, recently acquired by Fairfax, have teamed up to buy Kids Like Us, the production company that makes the popular kids' show Hi-5. Terms were not disclosed, but red cordial is said to have been involved.

The former Hi-5er Charli Delaney took her lead from the 2UE broadcaster John Laws by helping reduce the cost base of a business about to be acquired by Fairfax when she quit recently.

While we understand Gyngell's affinity to Hi-5, given Nine airs the show, we had somehow picked Kirk as the (All) Black Wiggle.

Cranky emails

We were taken aback by reports yesterday suggesting a few heated emails were going backwards and forwards between lawyers for the Seven Network and West Australian Newspapers.

Seven, which is seeking a little influence on the WAN board after Kerry Stokes built a 19 per cent stake in the Perth publisher, is apparently upset at the time and money WA Newspapers is spending on material to send to shareholders. It is also apparently concerned that directors may use company funds to defend their positions on the board.

Not that Seven would ever misspend shareholder money. After all, the money thrown the way of the C7 court action was all about defending legitimate business interests.

Integrity for sale

We were troubled to hear news yesterday that UBS had gone out into the market to buy some integrity. Washing the wax from our ears and listening more carefully, we were relieved to hear UBS has in fact bought a research house in the US called Integrity Research Associates. Still, should the local UBS arm feel the need to get its hands on some, er, integrity, it could always start with a local shop called Integrity. We've heard it may be run by a chap they may remember, Paul Fiani.

Into the red

Evans & Tate has finally found a way to clear that wine glut that helped send it to the wall owing banks $100 million. The revolutionary idea? A wine auction.

Sadly, the idea belongs to the receivers, and it's all come a bit too late for the company.

Our eyes were drawn to newspaper ads yesterday pointing out that the receivers are auctioning $2 million in stock. We can only wonder if the prices are better than what was on offer during the glut. Bids start at $9, with fancy labels including 2004 Mosaic Petit verdot and 2003 Barramundi Reserve shiraz.

Sol's sojourn

We have sold Sol Trujillo short suggesting his latest overseas trip is simply to Hong Kong. We were wrong. This time around he is also hanging out in London and New York. We can only wonder if he will catch up with the Republican presidential candidate and chum John McCain.

One eager brother

Challenger Infrastructure Fund may blush at the advances it is receiving from a well-known British playboy. Vincent Tchenguiz, whose Consensus Business Group is offering to buy the rest of the company it doesn't already own at a bit of a discount, is known in Britain as "the other brother".

Vincent and his brother Robert are regarded as somewhat frenetic dealers in business assets, having set up Rotch Property Group in 1982, dealing in flats in London. Today they reportedly control assets worth more than #4 billion ($8.7 billion). While Robert has been described as a reformed champagne-sipping former playboy once linked to Princess Diana, the Tehran-born Vincent is still enjoying life.

But an article in the London Telegraph notes Vincent "is not above vanity, with a taste for personalised number plates". Both brothers' playboy lifestyles have filled gossip columns, but Robert has married while his older brother remains single. "Slowing down, yes. Settling down, never," Vincent said.

Still, the bid appears a touch optimistic after the shares hit a record low last week. What's more, the bid came in lower than the value of net tangible assets.

Meanwhile, elsewhere in the Challenger empire, we noted yesterday market chatter about Challenger Financial lending some readies to MFS. Challenger tells us it doesn't have any exposure to MFS on its balance sheet in equity or debt. But its high-yield fund that holds about 100 different securities includes two debt instruments linked to MFS. One is an MFS floating rate note that has a current carrying value of $56.7 million, and the second is MFSG, an ASX listed hybrid, with a current carrying value of $27.9 million.

© 2008 Sydney Morning Herald

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