WA Newspapers (WAN), the owner of a network of West Australian radio stations and the main state newspaper The West Australian, is in play, with Kerry Stokes making a bid for a minority share holding in the company. The move is one of several changes happening as the new media laws have been passed.

The move comes before the final ratification of the new media laws in parliament, but is being treated as a signal of Stokes’ intentions if the bills are passed. A spokesperson for the deal said it was intended as a blocking move rather than a full takeover signal at this time.

WAN owns stations Red FM, Spirit Radio Network and WA FM in regional Western Australia.

Citigroup, acting on behalf of Stokes’ Seven Network, grabbed 8.5% in WAN offering $11 per share, 53 cents above yesterday’s closing price. It is believed Citigroup had been looking for up to 14.9%, the maximum holding possible under the current media laws (but not the new laws).

The 8.5% holding cost Stokes just under $200 million.

At 1:00pm AEST, WAN was trading at $10.78, below the $11 per share Seven was prepared to pay for the holding. 23.7 million shares have gone through the exchange today.

The stock exchange is alight with speculation on which media company will be next to change hands.

James Packer’s Publishing and Broadcasting Limited (PBL) has confirmed it will sell 50% of the Nine Network and many of its magazine titles to an Asian Private Equity firm.
PBL shares are up $1.50 after reopening on the Australian Stock Exchange.

Some analysts this afternoon are speculating Packer may use the freed-up cash to make a bid for long-time rival Fairfax (FXJ). Fairfax stock is up yet again to $4.80 on huge volume of 22.7 million shares.

Austereo (AEO) is also significantly up on sector speculation and last traded at $2.20, a 23% premium on the stock’s closing price just two weeks ago.