Bruce Gordon set to block Discovery/Foxtel Ten bid in favour of own proposal

Ten logoMajor Ten shareholder Bruce Gordon appears likely to block a potential $590m Discovery/Foxtel bid for the network in favour of his own alternative proposal.

The Financial Review reports this morning that Gordon is thought to oppose the current 23 cents a share proposal by the Discovery/Foxtel consortium, instead favouring his own debt proposal which would given the billionaire and 14.9 per cent shareholder more control over the embattled commercial broadcaster.

It had been reported the joint bidders had dropped their original offer from 26 cents a share to 23 cents after due diligence. The offer is thought to be is cash and shares in an effort to persuade investors, such as Gordon, who would wish to keep a shareholding to approve the offer if it is agreed.

Ten appointed Citi as advisers to help it assess “a range of potential strategic options”, following reports of interest in buying the company back in November.

In December Ten confirmed that several offers have been made for the company with those offers thought to have come from Discovery/Foxtel, Anchorage Capital Group, Silver Eagle and Saban Capital Group.

Major shareholders Lachlan Murdoch and James Packer are thought to be willing sellers, while Gina Rinehart’s position on a potential sale is unknown although all stand to realise significant loses should they sell at the current 23 cent price having bought in when the share price was well over one dollar.

Read the Financial Review’s full article on Gordon here (paywall).


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