An investment vehicle set up by the Packer family has bought into wagering operator Tabcorp.
Ellerston Capital and its associates have taken a stake of 5.06 per cent in Tabcorp, comprising about 38.8 million shares.
Ellerston has been building its stake since June 2014, and its interest is now worth about $156 million.
But analysts downplayed the move as a precursor to a possible takeover play for Tabcorp.
Tabcorp's constitution and an agreement with the state of Queensland restricts an individual from having voting power of more than 10 per cent in Tabcorp.
Ellerston, a specialist funds manager, was established in 2004 as a subsidiary of CPH, a holding company used by billionaire James Packer's family.
CPH holds 25 per cent of Ellerston's ordinary shares and 50 per cent of casinos operator Crown Resorts, which is chaired by James Packer.
Ellerston's investment in Tabcorp comes after Crown in August lifted its stake in online racing and sports betting firm Betfair Australasia to 100 per cent, from 50 per cent.
Morningstar analyst Brain Han said it was unlikely that Ellerston was taking a strategic stake in Tabcorp, and that Ellerston could just be making what it considered to be a good investment.
He also doubted that Mr Packer would be interested in making a play for Tabcorp.
"I would very much doubt it, especially given that Crown has already got full ownership of Betfair Australasia and he (Mr Packer) has got his plate full at the moment with all the casinos going on around the world," Mr Han said.
IG market strategist Evan Lucas said movements in Tabcorp's share price did not suggest that investors believed Tabcorp was now a target.
Shares in Tabcorp were three cents weaker at $4.00 at 1317 AEDT.
"I think he (Mr Packer) would be more interested in online wagering rather than the traditional wagering business (such as Tabcorp's TAB outlets)," Mr Lucas said.
"I would suggest that he will concentrate on Betfair because that's where he probably sees revenue growth."
Crown used to hold a 10 per cent stake in Echo Entertainment Group, which owns The Star casino in Sydney and was spun out of Tabcorp in June 2011.
Crown sold its 10 per cent stake in Echo in May 2013 for $264 million, after buying into Echo in July 2011.
Crown's stake in Echo was seen as a key defensive position in Crown's highly-publicised campaign to establish a second casino in Sydney.
A spokesperson for Ellerston Capital was not immediately available to comment on the Tabcorp investment.
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