It would appear that billionaire James Packer may have some tough decisions to make in the coming months. Mr Packer owns 8.8% of Ten Network Holdings Limited (ASX: TEN) and according to the Australian Financial Review, Ten Network's beaten-down share price has caught the attention of at least two suitors.
The current share price of 26 cents – it's 6% higher today – is a far cry from when Packer bought his stake in Ten Network at a price well north of $1. The first dilemma which could emerge for Packer will be whether to accept a takeover offer – presumably at a premium to today's price but still well below his entry cost price, or whether to stick it out and play a role in Ten Network's turnaround – perhaps via his own takeover offer.
The second dilemma facing Packer is how his Crown Resorts Ltd (ASX: CWN) should respond to today's announcement from Echo Entertainment Group Ltd (ASX: EGP) that it has entered into a consortium with two Asian-based partners for a proposal to develop an entertainment precinct and integrated resort at the Queen's Wharf Brisbane site.
Having lost out to Crown at the Barangaroo South site in Sydney, Echo is no doubt approaching the Brisbane contest with increased focus and determination to not miss this opportunity. Echo's move ups the stakes and possibly the cost for Packer and his hope of breaking into the Queensland market. It will be interesting to see how Crown responds.
