News Corp.'s CMH Bid May Face Challenge From Stokes-Report

Australian billionaire Kerry Stokes could frustrate News Corp.'s (NWS) 1.97 billion Australian dollar (US$1.98 billion) bid for Consolidated Media Holdings Ltd. (CMJ.AU) by using his stake in the company to seek greater exposure to the pay television sector, the Australian Financial Review reports Friday, without saying where it got the information.

Mr. Stokes, whose Seven Group Holdings Ltd. (SVW) has a 24% stake in Consolidated Media, which owns 25% of Australia's leading pay television provider Foxtel, was unlikely to sell his stake without trying to obtain a strategic benefit, the newspaper said.

A spokesman for Seven Group was unable to be reached for comment.

News Corp. is the owner of The Wall Street Journal and Dow Jones Newswires.