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NWS News Corporation

41.68
0.00 (0.00%)
28 Mar 2024 - Closed
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Share Name Share Symbol Market Type
News Corporation ASX:NWS Australian Stock Exchange Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 41.68 37.93 41.93 41.78 41.38 41.69 114,310 07:50:00

Lachlan Murdoch Loses Challenge to CBS's Bid for Ten Network

18/09/2017 7:22am

Dow Jones News


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By Rob Taylor 

CANBERRA, Australia--Television entrepreneur Bruce Gordon and Lachlan Murdoch, the son of media mogul Rupert Murdoch, have lost a legal bid to thwart the takeover of insolvent Ten Network Holdings Ltd. by U.S. broadcasting giant CBS Corp.

Messrs. Gordon and Murdoch had challenged in court the proposed buyout of Ten Network--worth 201.1 million Australian dollars (US$161 million)--arguing their own bid to buy the company wasn't properly considered by insolvency specialists KordaMentha in deciding to favor CBS's bid last month.

On Monday, however, the Supreme Court in New South Wales state dismissed the challenge, clearing the way for a meeting of creditors on Ten Network's future Tuesday.

"I am not satisfied that the plaintiffs have established that any deficiencies...such as to warrant orders requiring that further information be provided to creditors or that the second creditors' meeting be restrained," judge Ashley Black said in his Monday determination.

Messrs. Gordon and Murdoch said they would appeal the decision.

Mr. Murdoch is co-chairman of News Corp, which owns The Wall Street Journal publisher Dow Jones, while Mr. Gordon controls a company that owns regional broadcasting licenses across Australia.

Ten Network was placed into voluntary administration in June, with administrators last month recommending the sale of the company to CBS. Messrs. Gordon and Murdoch--who is also executive chairman of 21st Century Fox--launched a fresh bid for Ten Network on Friday after Australia's Parliament passed laws easing ownership controls in the media sector.

At the meeting Tuesday, creditors will consider resolutions including selling Ten Network to CBS, while a KordaMentha spokesman said participants would likely also consider the "late bid" by Messrs. Gordon and Murdoch and possibly ask for an adjournment to allow more consideration. Resolutions require approval both from creditors and Ten's 750 employees.

Australia's traditional media outlets, including The Wall Street Journal publisher News Corp, have been hard hit in recent years by falling advertising revenue as audiences embrace digital platforms.

Parliament last week abolished a 75% audience "reach rule" that prevented free-to-air television networks like Nine Entertainment Co., Seven West Media Ltd. and Ten Network from snapping up regional affiliates. It also abolished the two-out-of-three rule that prevented large media companies from controlling free-to-air TV stations, newspapers and radio stations in the same market.

Messrs. Gordon and Murdoch had sought a declaration from the court that KordaMentha's report to creditors on the proposed CBS tie-up didn't provide adequate information about their joint bid for Ten Network, which last year posted losses of A$157 million.

They also sought to lower the weighting of CBS's own vote on the merger. The U.S. behemoth was the largest creditor before the network went into administration, giving it a strong say over possible outcomes. CBS is owed about A$350 million, while Fox--the second largest creditor--is owed about A$125 million, mostly as a result of program contracts.

Judge Black said the question of "which of any competing commercial proposals put by interested parties would be most advantageous" to Ten Group creditors was a matter for creditors and shareholders. He ruled that CBS wouldn't be restricted in voting.

Write to Rob Taylor at rob.taylor@wsj.com

 

(END) Dow Jones Newswires

September 18, 2017 02:07 ET (06:07 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.

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