David Hope: The Sagacity of John Bannon

In 1983 Radio 5DN advised the SATAB it intended to cease
broadcasting horse racing. Approaches were made to the other Adelaide radio
stations to take on the role, but none of them had the least interest.Shortly after that Radio Station 5AA came onto the market
and the TAB saw an opportunity to acquire it to broadcast the races. I was a
part of a takeover team formed to acquire 5AA, along with the General Manager
and the Administration Manager. After a comprehensive feasibility study a bid
to acquire 5AA was sanctioned by the board.After some to-ing and fro-ing, there were two bidders left
in the hunt, the TAB and Kerry Packer’s media group, both offering $18 a share.On the morning of a particular board meeting, I received a
phone call on behalf of a group controlling 43% of the shareholding that if the
TAB increased its bid to $19, it would receive the block of shares that
afternoon.After some earnest discussion at the board meeting, it was
agreed that the offer should be accepted, subject to approval of the Treasurer,
John Bannon, who was also the Premier. The TAB was a moderate contributor to
the State’s revenue, with 50% of its profit being distributed to the
government. It was important to seek the advice and approval of the Minister of
State responsible for the state’s finances, the Treasurer.The Chairman placed a call to the Premier and advised him of
the situation. The conversation with the Premier was short.John Bannon asked three questions.‘Have you done a cost-benefit analysis?’‘Yes.’‘Was it prepared on a conservative basis?’‘Yes.’‘What was the break-even point per share?’‘$18.73’John Bannon advised that if the Board was satisfied that the
$19 price could be accommodated, then the decision to make the offer had his
approval.That afternoon the TAB acquired the rights to the group’s stock
holdings giving the TAB the rights to a majority of the shares and the takeover
battle with Kerry Packer was won.