Bruce Gordon’s man quits TEN Board
Paul Mallam, who represents major shareholder Bruce Gordon, has quit the TEN board.
- Published by David Knox
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Network TEN director Paul Mallam, who represents major shareholder Bruce Gordon, has quit the Board.
Mallam has been a director since 2010, representing the Bermuda-based billionaire.
Media reports speculate there had been a disagreement between Mallam and Gordon, ahead of the final deadline for prospective tenderers closing tomorrow.
In a statement to the Australian Securities Exchange today Mallam said: “I would like to pay tribute to my fellow directors, who have addressed the issues facing the company in a disciplined and cohesive manner.
“I also have nothing but praise for the focus and commitment of management and staff of Ten. Pleasingly, their efforts have repositioned the network and created a more competitive platform for 2015.”
The Australian Financial Review today reported that Gordon had reversed his previously held opposition to a Discovery / Foxtel bid for the network, to be capped at a 14.9 per cent stake.
Any offer needs the support of the network’s four main shareholders, Lachlan Murdoch, Gina Rinehart, James Packer and Bruce Gordon, but will also come under the scrutiny of the ACCC.
Source: The Australian, Mumbrella
2 Responses
Why would Foxtel be worried about the 15% threshold? That is ‘deemed control’ in the BSA for the purposes of the cross-media and licence ownership limits, which don’t apply to pay TV licensees.
Is it not just the ACCC they have to worry about?
Foxtel’s share would be capped at 14.9% to get around cross media ownership restrictions.
With Discovery as an indifferent majority owner the ACCC will have questions about Foxtel’s control. After the mistake of allowing Packer to own Nine and half of Fox Sports they refused to allow Stokes to control Seven and part of Fox Sports.
Gordon could have just been trying hold out for a higher price. He has tried that before in affiliation and takeover negotiations.