JAMES Packer is making a stunning bid to replace the chairman of The Star casino with former Victorian premier Jeff Kennett.
The move is part of a takeover attempt under which he hopes to build a second casino at Barangaroo.
Mr Packer, who owns Crown in Melbourne, will announce today he will bring on an extraordinary general meeting of shareholders in an attempt to roll Echo Entertainment chairman John Story from his board position.
Because Mr Packer also owns a substantial shareholding in Echo, he has the right to call the meeting.
Echo must announce a meeting to vote on the proposal within 21 days and hold it within two months.
Mr Story refused Mr Packer a board seat two months ago when he raised his stake in Echo to 9.9 per cent, arguing he should not get one because Crown is a competitor.
Now they are shaping for a bare-knuckled fight.
Mr Packer already has an application before the Liquor and Gaming Authority to raise his stake in the company.
He has put a proposal to the state government to change NSW’s one-casino licence to allow him to build a $1 Mbillion luxury hotel at Barangaroo that would include a high-rollers’ casino.
Mr Kennett said he had accepted Mr Packer’s challenge to go for the Echo board because he was excited about lifting Sydney out of its rut.
“It’s probably true that since the building of the Opera House so many years ago, Sydney has not created a product of difference since then,” he said. Mr Packer said yesterday he believed that Mr Kennett could turn Star into a world-class enterprise.
“Jeff Kennett is the best premier Australia has had in the last 30 years, in my opinion,” he said.
“He knows how to get things done. He turned Victoria around in 10 years, from a basket case to the leading state in Australia.”
In a letter to shareholders to be released today, Mr Packer writes: “Crown has nominated Jeff Kennett as a director because Jeff can help turn Echo into a world class gaming and entertainment company.
“Jeff has an outstanding reputation for management, is independent, will represent all shareholders, and has proven experience in working with government.”
Mr Kennett said he wanted to help Echo “lift the bar” at its casinos in Sydney and Queensland.
“I am excited by the opportunity to bring to Echo . . . the substantial experience I’ve had with first Lloyd Williams and then James Packer and Crown in Victoria,” Mr Kennett said.
“Crown is not only the biggest employer in the state, but it has been a catalyst for so much of Victoria’s tourism, attracting the biggest and best events in the nation.”
Mr Kennett said that as a member of the Singapore Tourism Board’s advisory council he strongly urged the city state to allow the construction of casinos to tap into the huge growth of the high roller gambling market.
Mr Kennett said the proposed Barangaroo six-star hotel-casino complex had the potential to become a major city attraction.
“When you have a premium site you have got to make sure whatever you put on it is more outstanding than the site itself,” he said.
“This has the potential to not only create a huge amount of employment and associated economic benefits for NSW, but also to be a wonderment of and for Sydney.”
Mr Kennett criticised Premier Barry O’Farrell last year for failing to attend the opening of The Star following an $870 million upgrade.
Recently, in a sign he was growing impatient with a lack of action in Sydney, he said Mr O’Farrell should hold a referendum in an effort to break an election promise and sell the $10-15 billion electricity poles and wires to build infrastructure to get Sydney moving.
Crown argued that shares in Echo had been allowed to fall to $3.70 before Mr Packer’s purchase of shares raised them by almost a dollar.
A Crown source warned: “James isn’t going away. If he misses this one he’ll wait until he gets more shares then he’ll call another general meeting, then another one. He’ll get there eventually.”
http://www.news.com.au/business/james-packer-in-casino-wars/story-e6frfm1i-1226373291918
Didn’t seem to affect the SP today at all.
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