sen tip to win deal
http://www.heraldsun.news.com.au/footy/common/story_page/0,8033,20207798%255E19742,00.html
SEN tip to win deal 22 August 2006 Herald-Sun page. 80 Damian Barrett
THE share price of the parent company of radio station SEN has risen more than 300 per cent in the past two months in speculative buying related to the broadcasting of AFL matches from next season.
Pacific Star Network's Australian Stock Exchange price closed at 9 cents last night, having dropped to 2.4 cents in mid-June.
The 24-hour all-sports station is vying with 3AW and Triple M for the licences to broadcast AFL for 2007-09.
AFL chief executive Andrew Demetriou said last night resolution on the contracts was some weeks away.
Commercial networks are each being asked to pay about $800,000 a year for a premium package in the next AFL deal.
The premium option would involve covering Friday night games, the "best" Saturday matches and a Sunday afternoon fixture.
The secondary package incorporates Friday nights as well as "lesser" Saturday and Sunday matches, including new Sunday twilight games.
Non-commercial ABC Radio is expected to retain access to all quality matches at a dramatically reduced price.
SEN general manager Barry Quick said the share price rise was due to many factors.
"There are a myriad of reasons for the jump in share price and, in the first place, it was grossly undervalued," he said. "There has also been some speculation in relation to AFL rights and we have put a range of options to the AFL and we are waiting to hear back.
"Thirdly, the potential changes to media cross-ownership laws next year has also come in to play."
SEN, launched in early 2004, has been strongly tipped to gain part of the AFL rights.
Its parent company recently informed the stock exchange it would "undertake an equity raising upon reaching an outcome to the AFL discussions".
In the past 12 months, Demetriou had indicated the AFL had analysed buying equity in SEN, but he indicated last night such an arrangement was unlikely.
PNW Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
