An emotional James Packer burst into tears as he recounted a simple act of kindness that meant so much to him when he was at his lowest 23 years ago.
He and Lachlan Murdoch – the sons of billionaires Kerry Packer and Rupert Murdoch – led their fathers’ companies to invest nearly $1 billion in Australian telecoms company One.Tel in 1999.
But it was a disastrous investment, with losses of $132 million in the six months to December 2000.
“I told Lachlan we weren’t going to run out of money, and we did run out of money. I blew it. I blew it,” Packer said. ABC’s Australian Story.
Within five months, One.Tel went bankrupt.
“I had a breakdown. Lachlan was incredibly kind to me,” Packer recalls.
Both men were born on September 8, although Murdoch is four years younger.
On that date in 2001, Murdoch celebrated his 30th birthday and he celebrated.
An emotional James Packer (pictured) burst into tears as he described the kind gesture from Lachlan Murdoch that meant so much to him when he was at his lowest 23 years ago
James Packer, his then wife Erica and Lachlan Murdoch’s wife Sarah Murdoch arrive at the Birdcage on Derby Day at Flemington Racecourse in Melbourne
Packer wiped away tears as he recalled a birthday he would never forget.
“So out of nowhere I get this invitation. If I were Lachlan I think I would probably never talk to myself again. So Lachlan gives a speech and halfway through the speech he says I’m here and it’s my birthday and he wants to wish me a happy birthday,” he said.
‘And it was one of the most moving things that ever happened to me in my life.
“It’s easy to be loyal when things are going well,” he said. “It’s in the bad times that you really see who’s sincere and who’s not.”
Packer told ABC reporter Paddy Manning that he will always be grateful to Murdoch for his support.
“One.Tel was 99 percent my fault,” he said.
‘Lachlan was incredibly loyal to me. He saw that I was in pain.
“I think he felt that I didn’t do it on purpose… and that’s something I’ll never forget.”
The couple see each other six times a year and their friendship has lasted for more than thirty years.
“(Lachlan) is one of my favorite people in the world,” Packer said.
“I adore him. He’s been an incredibly good friend to me through good times and bad.”
James Packer (left) and Lachlan Murdoch (right) have been friends for more than thirty years
Mr Packer (pictured centre left) said Lachlan Murdoch’s (pictured front left) simple act of friendship was something he had never forgotten
While Packer blames himself for what happened to One.Tel, he later sold his 10 percent stake in the REA Group, owner of realestate.com.au, for $10 million.
“I wanted to be helpful because One.Tel was so bad,” Packer said.
“But let me make one thing very clear: I never imagined that the 10 percent stake he bought from me for $10 million would be worth $2.5 billion today,” he said with a laugh.
‘And I feel less guilty about One. Consider what happened to REA.’
Packer also offered advice to anyone who thought they could outsmart their old friend.
“I think some people underestimate Lachlan,” he said.
“I think it’s a mistake to underestimate Lachlan.”