The Ten Network Has Appointed Citi As An Adviser Amid Reports Of A Takeover

Ten CEO and exec chairman Hamish McLennan. Photo: Getty/ Quinn Rooney

Ten Network has appointed Citi as an adviser on its strategic options following reports of a possible takeover.

“While a number of potential strategic options have been considered to date, there is no guarantee any transaction will eventuate,” the free-to-air network said in a statement to the ASX

According to reports, a number of suitors are eyeing off Ten, including Foxtel and the US giant Discovery Communications.

Fairfax Media says Foxtel, which is jointly owned by Rupert Murdoch’s News Corporation and Telstra, would need to keep any stake in Ten to 14.9% due to anti-competition concerns.

The ACCC (Australian Competition and Consumer Commission) has warned of intervention if Foxtel tries to acquire a free-to-air network.

Fairfax Media itself is also said to have looked at a possible merger with Ten.

Shares in Ten are trading at 21 cents compared to $1.45 four years ago, making the troubled television network a vulnerable takeover target.

Ten lost $168.3 million in the year to the end of August.

Australia’s richest person, Gina Rinehart, this week stepped down as a director of Ten to concentrate on her iron ore mining business. She is, however, keeping her 10% stake in Ten.

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