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Shareholder trio back in court over TEN deal

Three shareholders stand in the way of CBS acquiring TEN, the week before network Upfronts.

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Lawyers and shareholders arguing over transfer of TEN shares to CBS were back in court today.

The hearing, which was scheduled for 3 days, could stretch until Friday after administrators KordaMentha sought to introduce a new report into evidence.

The Australian reports 3 shareholders have challenged the transfer of shares to CBS: Yunfeng Du, David Gubbay and Chun Leung. A last-minute application by a former stockbroker to join as an interested party did not proceed after Justice Ashley Black advised costs might be awarded against him if he was unsuccessful.

Robert Newlinds SC on behalf of KordaMentha, told the court a plan B would see TEN’s assets sold to CBS under the same conditions as the proposed deal, regardless of whether it approves the shares transfer.

Meanwhile TEN’s 2018 Upfronts are due on Thursday November 9 in Sydney.

Justice Black has used the word “ambitious” in relation to  TEN’s “annual event which is directed to promoting program content for the 2018 year and securing advertising commitments”.

But CBS is expected to invest heavily in new content, including Australian production, once the deal is finalised. It already has the green light from the Foreign Investment Review Board.

Justice Ashley Black adjourned today’s proceedings early to give the shareholders time to read the report. The hearing resumes tomorrow.

Additional source: Fairfax

5 Responses

  1. I’m not sure what the 3 shareholders’ arguments are, but I’d be curious to know more about the value put on the CBS (in particular) and Fox contracts, which is what has made the company worthless. Their actual creditors are fairly low and are dwarfted by these 2 contracts. I don’t believe this is an actual liability on the Balance Sheet either. I think it’s a valid question given that CBS benefits as the new owner

  2. Let’s hope CBS has confirmed ownership before November 9. Hard to see what these three get out of Their argument against the transfer? Is it about future pPotential of the shares, because they were determined to be worthless and have no value. They are arguing over nothing.

    1. Exactly. I had a lot of shares with a price 0f $2.14
      Then in December 2012 I had to sell them at $0.26 each. Such is life for an investor. I sold shares at a big profit in other holdings at the same time. End result I came out nearly even after the shock of the 2008 GFC.

      Shareholders get over it and move in. These three are pathetic. Ten shares were almost worthless. Very sad that this happened but it did. Now move on and let CBS get Ten back on track. Simple as that 🙂

  3. I will be delighted when CBS are finally in full control so that Ten can be an effective Network in 2018 once again. The last 8 to 9 years have been pathetic for viewers and staff. The billionaire club can try and ruin another Network instead.

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