Despite the investors being unimpressed by the deal announced by Australian billionaire Kerry Stokes, the Chairman of Seven Network unveiled plans to merge the media group with his privately held heavy equipment company WesTrac Holdings for 1 billion Australian Dollars.

Seven's shares plunged more than 5% in a bid to take full control of the media group by merging it with his private tractor and equipment hire business.

The deal, to be re-named Seven Group Holdings, would depend less on advertising revenue and have more exposure to the booming resources sector.

Peter Gammell, a 20-year Stokes lieutenant said, "He's putting this as his primary investment company and his net worth is going to be dependent on the performance of this business".

Approval from 75%of shareholders is required for the deal to proceed.

"It's too early to say at this point", said Paul Xiradis, Head of Equities at Ausbil Dexia, which owns 7.28% of Seven.

Seven made a profit after tax of $40.561 million, down 47.4% from the prior corresponding period.

While Seven Network's media interests include various stakes in television, magazines and newspaper assets, WesTrac sells Caterpillar Construction and Mining Equipment in Australia and northeast China.