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Bruce Gordon increases stake in Ten ahead of WIN switchover

Bermuda-based billionaire Bruce Gordon has increased his stake in Network Ten just days ahead of the switchover of his WIN stations to Ten.  

Ten logoGordon’s lawyers this morning advised the ASX that the media mogul had once again used a complex arrangement with the Deutsche Bank, where the bank holds shares on his behalf, in a cash-settled shares swap to increase his stake in the major metro TV network to 14.56%.

The move comes just weeks before the Federal election which has stalled proposed media reforms in which Gordon, through his stakes in Nine and Ten and ownership of regional TV network WIN, is likely to be a key player.

Documents filed with the ASX show that Gordon, through his investment vehicle Birketu, had lifted his stake to 14.02% – up from 13.16% last year – with the company then entering into the the shares swap with Deutsche Bank last week which gives him an additional 2.5%.

This is not the first time Gordon has used the controversial derivatives instrument to increase his control of media shares.

Back in March, Gordon was revealed to be the mystery party behind a purchase of a 3.4% stake in Nine. Gordon is already the station’s largest shareholder with just under 15% of its shares, with the parcel of shares worth around $50m bought by Deutsche Bank to avoid breaching media ownership laws that restrict him to owning no more than 15% of Nine.

At the time, media watchdog the Australian Communications and Media Authority (ACMA) said it was “actively monitoring the situation” given Gordon already has 14.99% of Nine. The ACMA has been contacted for comment on Gordon’s latest share purchase.

The move comes as regional TV networks WIN and Southern Cross Austereo realign with WIN, last month signing a programming deal with Ten while SCA signed with Nine.

The major redrawing of regional TV’s borders was, in part ignited by WIN’s legal bid to prevent the Nine Entertainment Co., from streaming content into its regions. WIN lost the resulting Federal Court case in April.

Update 2.30pm – The ACMA has this afternoon issued the following statement:

The ACMA actively monitors activities and relationships involving regulated media assets (commercial television, commercial radio and associated newspapers) to ensure ongoing compliance with media diversity and control requirements.

In considering whether a person is in a position to control a regulated media asset, the ACMA looks at both deemed control (including direct shareholdings and traced company interests) and actual control (including agreements, understandings and arrangements).

The ACMA has no further comment to make on this matter.

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