Stokes Backs Wan Independence

Sydney Morning Herald

Tuesday April 15, 2008

Miriam Steffens

SEVEN Network boss Kerry Stokes has reduced his chances of becoming chairman of West Australian Newspapers, deciding to elect two external candidates to the publisher's board who have openly called for an independent chair.

Seven said yesterday it would back the retiring deputy vice-chancellor of the University of WA, Professor Margaret Seares, and the former media and telecom executive, Peter Abery, to sit alongside Mr Stokes and his right-hand man, Peter Gammell, on WAN's board if it succeeded in ousting the existing four non-executive directors next week.

The endorsement came on the recommendation of recruitment firm Korn/Ferry, which Seven appointed last week to meet all nine external candidates and assess their credentials. The broadcaster urged other shareholders to vote the same way.

In conversations with the Herald, Professor Seares and Mr Abery have both stressed that their candidacies were entirely separate from Mr Stokes's campaign for the board and that WAN would need a chairman who was independent of Channel Seven and its proprietor.

"I regard myself as a completely independent person in all of this, so I'm not in there arguing for Kerry Stokes or against Kerry Stokes or for the board or against the board," Professor Seares said.

Mr Abery said it was "important that the board does have a chairman independent of Seven because otherwise their 20 per cent [stake] exercises potentially more influence."

Professor Seares has ruled out standing for the chairmanship, which would leave only Mr Abery - or one of two additional directors to be appointed if the board was expanded - to take on the role.

Seven, which owns 19.4 per cent of WAN, has called for the sacking of the publisher's directors - except for the chief executive, Ken Steinke - to make room for Mr Stokes and Mr Gammell.

If it succeeds at a shareholder vote on April 23, Mr Stokes has vowed to push for an extension of the five-member board to seven members, seeking to disperse fears he was out to get control.

WAN has labelled his campaign an attempt to effectively take over WAN without paying a takeover premium. Its chairman, Peter Mansell, said yesterday's endorsement was another sign that Seven wanted to control the publisher "by removing what its sees as non-compliant directors and controlling the process for replacements".

© 2008 Sydney Morning Herald

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