Max the Axe lops TV chain

JOHN Howard's former right-hand man, Max "The Axe" Moore-Wilton, will today be crowned Australia's regional broadcasting king.

JOHN Howard's former right-hand man, Max "The Axe" Moore-Wilton, will today be crowned Australia's regional broadcasting king.

Macquarie Media Group, the company chaired by the former bureaucrat, already owns the nation's biggest network of regional radio stations. And last night it was preparing to unveil a deal to take over most of the Ten Network's regional affiliate television stations.

Mr Moore-Wilton's ascension will come as part of a massive three-way deal worth up to $1.3billion, involving Macquarie Media and Fairfax Media carving up Southern Cross Broadcasting.

While Macquarie will emerge with Southern Cross's regional television assets, the deal will see Fairfax Media return to running major metropolitan radio stations after a 20-year absence. It will take over the extensive radio assets owned by Southern Cross, including Sydney's 2UE, Melbourne's 3AW, Brisbane's 4BC and Perth's 6PR.

The carve-up of Southern Cross marks completion of the first cross-media deal since the federal Government relaxed media ownership laws earlier this year. Shares in Macquarie Media, Fairfax and Southern Cross were put on a trading halt yesterday afternoon, with the story first revealed on theaustralian.com.au.

The deal should be announced before this morning's opening of trade on the stock exchange.

Fairfax is also understood to be lined up to take over the production house Southern Star - the maker of Love My Way and Big Brother - and Southern Cross's Satellite Music Australia operation.

It is believed Fairfax will pay $500 million in total, while the regional television assets that Macquarie Media, controlled by Macquarie Bank, will take over are valued at up to $800 million.

The timing of the deal is believed to be related to last week's retirement of 2UE radio star John Laws, and the disappearance of his mooted $6 million a year in salary and endorsements from the Southern Cross payroll.

One source said last night: "The suggestion would be the question of Laws's millions had to be resolved, because that has an immediate benefit on the question of profitability of 2UE."

Mr Moore-Wilton, the former head of the Department of Prime Minister and Cabinet, will now preside over a regional television empire that spreads to all major states except Western Australia.

He is already in charge of Australia's largest regional radio empire, comprising more than 85 stations across the country. He was tight-lipped when contacted by The Australian last night, refusing to comment on his soon-to-be-enhanced media mogul status. He said Macquarie Media managing director Alex Harvey would "have something to say some time tomorrow, one way or the other".

But many have speculated Mr Moore-Wilton's main job is to expand Macquarie Media in the wake of the relaxation of media ownership laws earlier this year.

Mr Moore-Wilton joined Macquarie Media in March, after a series of high-profile roles in other parts of the Macquarie Bank operation, including his job as executive chairman of Sydney Airports Corporation.

The Southern Cross name is now expected to disappear from the Australian corporate landscape. If the deal goes through, the future role of Southern Cross managing director Tony Bell is not known.

There were suggestions yesterday that top-level Fairfax board members had reignited interest in a joint takeover with Macquarie Media for Southern Cross only a week ago.