Buyback ups Stokes' Seven control

Media mogul expected to own 40% by year's end

By MARK WOODS

SYDNEY -- In a stunning windfall, Australian media mogul Kerry Stokes has increased his controlling stake in the troubled Seven Network by nearly 7% to 33% without paying a cent.

That's because Stokes didn't offer any of his stock for sale in Seven's controversial buyback of 20.4% of its own shares in an attempt to boost earnings per share. The buyback cost the web A$325 million ($214 million).

Seven acquired about 65 million shares at $3.30 each, which while low was still above the current trading price of $3.10.

Additional accrual

Most analysts expect Stokes to acquire more shares cheaply to bring his stake close to 40% by year's end and to be the ultimate benefactor of new chief exec Julian Mounter's three-year restructuring plan.

Meanwhile, WIN TV, Bruce Gordon's rural affiliate of Kerry Packer's Nine Network, has cemented its position as Oz's largest regional TV broadcaster by forking out $17.4 million for two South Australian TV stations.