Kerry Packer Eyes Stake In Bachchans Company

Australian media tycoon Kerry Packer is eyeing a slice of the financially beleaguered AB Corp, formerly known as Amitabh Bachchan Corporation Ltd. According to Mumbai-based entertainment industry sources, exploratory talks have been held between Amitabh Bachchan and representatives of Packer, including son James Packer. The agenda: Packer's company picking up an equity stake in AB Corp. The sources also explained that things are still at an initial stage and the quantum of stake that Packer may pick up in AB Corp, if all goes well, has not been finalised as modalities are still being worked out. "Broadly what has been discussed is that Kerry Packer, who runs a successful media company in Australia, has shown a keen interest in the entertainment industry in India and AB Corp looks like one of the suitable vehicles for such forays," a source close to the negotiations told Business Standard. Packer has already set up Nine Broadcasting India and has bagged the right to market few hours of programming on DD Metro in the evening. However, the source was quite emphatic that Bachchan, who currently is hosting a game show on Star Plus, Kaun Banega Crorepati, has not made up his mind though "Kerry Packer and son James are good friends of Amitabh Bachchan." Packer Jr., during his limited interaction with the media, has made it known that they intend to be a top entertainment conglomerate in India too with an eye to replicate the Australian success. In this connection, the plans also include production and distribution of films, an area where Bachchan's company has dabbled successfully in the past. Bachchan's company was launched in the mid-90s with much fanfare. But after some initial success, it ran into financial trouble and had to be referred to the BIFR. At present, the company is on a rehabilitation path. Kerry Packer is regarded as Australia's richest citizen and unlike the other Austalian-born media tycoon, Rupert Murdoch, had preferred to stay Down Under instead of spreading the business in other parts of the world. In an interview with Business Standard earlier this year, Kerry Packer, on being asked specifically, had said, "He (Rupert Murdoch) decided to go out and conquer the world, while I decided to stay home." In Australia, Packer's Publishing & Broadcasting Ltd (PBL), in which the family owns about 37 per cent stake, posted record profits on the back of its television network and newly-acquired casino, according to international media reports. PBL, which also owns Nine Network TV station in Austalia, reported a net profit of A$ 324 million for the year to end-June, beating both 1998-99 net of A$ 173.9 million and the top market forecast of A$ 300 million.