There are questions today about whether Network TEN’s board took too long to advise shareholders that James Packer’s Consolidated Press Holdings was not going to guarantee a new company loan.
Fairfax Media reports TEN was advised in early May that Packer was not willing to guarantee future financing options, four weeks before it advised shareholders.
According to the article, some shareholders have now called for regulators to examine this lack of disclosure, while experts say it could be grounds for a class action.
Professor of Economics at University of Wollongong and expert witness in several class actions, Alex Frino said, “They should probably have told the market as soon as they became aware that one of three historical backers had pulled out. I would not be surprised if in the near future we saw a class action that was launched against the entity.”
A spokesman for the broadcaster said: “TEN Network meets its continuous disclosure obligations on a continuing basis.”
A spokesman for the ASX said it was satisfied with TEN’s response to the pricing query.
“The obligation to keep the market appropriately informed rests with the company,” he said.
Bids for TEN are due by Friday, with a view to getting a buyer ready by the end of the month.