Tuesday, December 05, 2006

It could also prove the defining event in his personal corporate and
business development -- cementing his commitment to a Pacific and then
global gaming future. For the first time, we can reveal the full detail of
this extraordinary resort casino proposal, dubbed "Harry's Island", on
Singapore's Sentosa Island. Ostensibly, the "Harry" is mid-20th century
Howard Hughes-style adventurer Harry O'Brien, who "discovered" Sentosa.
Observers though have pondered whether it is entirely coincidental that
Harry is also the affectionate family name of the founder of modern
Singapore, Lee Kuan Yew. Whatever, the Singapore Government decides next
week between the "Eighth Wonder" consortium, of which Packer and his Macau
casino partner Lawrence Ho are members, and two tough competitors. One is
the Malaysian Genting group, which has teamed with Universal Studios in a
themed resort. The other is the Bahamas-based Kerzner casino group, which
has teamed with a Singapore company backed by the government-owned Temasek
investment arm. The Eighth Wonder proposal is far bigger than the other two
and way, and I mean way, over the top. It's already been revealed that the
group has possibly the world's best known sportsman -- soccer legend Pele --
to headline its sports offer. But that's only the start. You want to promise
the world's best restaurants? Roll out Alain Ducasse and his 14 Michelin
stars. Spectacular entertainment while the guests are chowing down? That
will come from Franco Dragone, who was the creative director behind much of
Cirque du Soleil. An oceanographic water world? It has to be Cousteau. Well,
it can't be the late Jacques, so instead it's grandson Philippe. A wellness
centre after a night at the tables? Deepak Chopra. Adventure park? Who else:
Mr Universal Studios Bob Ward. Spectacular events? The man behind the 2006
Winter Olympics ceremonies, Marco Balich. Fashion? Vera Wang.
You want to make sure the tables run on time? Good old German engineering in
Siemens. Oh yes, and these days security is a basic requirement. So who else
to oversee that but Mr 9/11 himself, Rudy Giuliani.

The main player in the consortium is Mark Advent, who built the New York New
York casino in Las Vegas. But Packer and his Hong Kong partner bring an
absolutely critical regional component.

Two points about Packer and his PBL group are to be made if the consortium
wins. The commitment will be less than half a billion dollars, soaking up
only a small part of the $4.5 billion released from the half-sale of the
local media assets.

SO IT does not itself preclude Packer/PBL going deeper into media if he
wanted.

In financial terms, it's not an either-or. But if he wins, it will cement
his focus on building his gaming-resort business around this side of the
Pacific -- from Macau through Singapore to the two casinos in Australia, at
Burswood in Perth and Crown in Melbourne.

This would irresistibly build into a push into gaming and resorts in the US.
And it would absolutely bury any possibility of going deeper into 20th
century media in Australia, where the focus is decidedly online.

What tends not be understood is the way Packer actually inherited a business
that he had created. At least remarkable, quite possibly unique.

Very pointedly, not the media side, but the gaming side which he and Peter
Yates -- first as a Macquarie adviser and then as PBL CEO -- built over
father Kerry's rather grudging acceptance.

If you've inherited a company you take great pride in having yourself built,
why would you be that committed to the part you only inherited?