Seven shareholders 'warming to merger'

Seven Network Holdings Ltd shareholders are warming to Kerry Stokes' $3 billion push to merge the television group with his privately owned mining and industrial equipment business WesTrac, the media mogul's right-hand man says.

Shareholder reaction to the proposal had been "very positive", Seven director Peter Gammell said on Thursday.

"So everything is on schedule and looking good. Obviously, I've seen a lot of people, the institutions directly and the brokerages, and it's gone well," Mr Gammell told journalists after addressing a business breakfast in Perth.

"I think everyone have got over the initial surprise of `what does this all mean?'

"A lot of people have visited WesTrac and ... are now saying they understand the story.

"They understand the resources sector and the growth in China."

WesTrac is the dealer for Caterpillar products in northern China as well as Western Australia, New South Wales and the Australian Capital Territory.

Mr Gammell said Seven's minority shareholders saw the deal as exposure to Mr Stokes' "crown jewels", as WesTrac is owned by the magnate's private company Australian Capital Equity.

Seven's minority shareholders will decide the fate of the deal, given Mr Stokes cannot use his majority stake in Seven to vote on the related-party transaction.

Mr Stokes owns 49 per cent of Seven and would end up with 68 per cent of the combined group if the deal is approved.

Seven's shares have steadily risen since the deal was announced on February 22, when they closed at $6.98. This compares to $7.93 at 1431 AEDT on Thursday, down six cents on the day so far.

WesTrac's contract as a dealer of Caterpillar equipment could be terminated by the Illinois-based manufacturer at 90 days' notice, but WesTrac chief executive Jim Walker was quoted in a recent Fairfax newspaper report as saying this was not an issue.

Seven Network on Thursday appointed one of its executives, Warwick Lynch, as chief financial officer of Seven Media Group, which holds the company's television, magazine and online assets.

Seven Media Group is a joint venture between the Seven Network and Kohlberg Kravis Roberts and Co.