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Packer gambling firm in fine debut

Shares in Crown Ltd, the gambling business spinoff of Publishing and Broadcasting Ltd, rose as much as 8.3 percent when they debuted yesterday on the Australian Stock Exchange.

Last month PBL investors endorsed a plan by Australia's richest man, James Packer, to split his company's gambling assets and media firms into separately listed companies -- Consolidated Media Holdings Ltd (CMH) and Crown -- and return A$2 billion (US$1.76 billion) to shareholders.

Shareholders will receive up to A$3 cash for each PBL share, which traded on Friday at A$20.80, plus a share in CMH and Crown. CMH shares will start normal trading on Dec. 17.

The move followed plans by PBL executive chairman James Packer to expand his global portfolio of casinos, with a A$2.7 billion war chest already earmarked for deals.

Packer will be the executive chairman of Crown and deputy chairman of CMH.

After about 90 minutes of trading yesterday, Crown shares, which listed at A$13.85 each, were up 6.1 percent to A$14.70, giving the company a market capitalization of A$10 billion.

Consolidated Press Holdings, the private company of the Packer family, will keep its current 38 percent shareholding in both new companies.
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