The Seven Network Ltd has drawn in some of the big names in local advertising - such as property developer Nigel Satterley and car dealer Brian Gardner - to help deflect conflict concerns regarding its bid for board seats at WA Newspapers Holdings Ltd.
The advertisers' comments downplaying conflict concerns are cited at the end of a six-page document refuting claims made earlier this week in an information memorandum issued by WAN's board as part of their attempt to stop Seven's chairman Kerry Stokes and another Seven director Peter Gammell gaining directorships.
"Seven believes that the concerns about competition issues are without foundation and are being raised by WAN as a smokescreen to avoid the real performance issues," Seven said at the end its communique which it plans to post to WAN shareholders over the weekend.
WAN chairman Peter Mansell has repeatedly said that advertsing was a key area of competition between the two companies which are both market leaders in the WA media market.
Mr Mansell said this would be one of a number areas where Seven representatives on the WAN board would be conflicted.
In its information memorandum, WAN said a study of the market showed that calculate that for the half year period ending 31 December 2007, 71 per cent of Channel Seven's advertising revenue and 38 per cent of WAN's advertising revenue in Perth was derived from 454 common clients.
But, according to Seven, Satterley Property Group head, Mr Satterley, said: "In our view, the appointment of new directors from the Seven Network to the board of WA Newspapers will not present any conflict of interest."
"Two new directors will not constitute a change of ownership..."
Mr Satterley confirmed this view to WA Business News, pointing out that Channel Seven Perth, the first television station in the city, was started by West Australian Newspapers and the two companies enjoyed synergies for a long time.
"Print and electronic media are more complementary than competitive," Mr Gardner is quoted by Seven.
"It's hard to see how Channel Seven securing places on the WAN Board would create conflict for advertisers like us."
Seven also highlighted WAN's own conflict in this area, given it owns regional broadcast and newspaper assets.
Mr Gammell said that other WA advertisers had also dismissed the conflict concerns.
