Ten shares drop amid reports US giant Discovery has walked away from purchase

TenShares in Network Ten have dropped this morning despite the company looking to downplay a report that the Discovery Network has walked away from its bid for the troubled TV network.

Today’s Australian Financial Review reports the American cable giant walked away from its offer to buy the main assets of Ten with Foxtel after the Ten board rejected an alternative offer that it take only a 14.99 per cent stake and a board seat.

Despite Ten (ASX:TEN) issuing a statement to the Australian Securities Exchange this morning urging “caution in dealing in its shares on the basis of media speculation about potential transactions involving the company” the share price crashed from 22c to 21c in early trading, and is sat at 21.5c as of 11am giving the company a market capitalisation of $565.55m.

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