Media mogul Bruce Gordon is preparing to mount a counter proposal for the Ten Network after indicating he will not support a joint bid from Foxtel and Discovery Communications.
In another twist in the ongoing battle for Ten, it’s understood the 85-year-old billionaire, whose private companies control just under 15 per cent of the network, will propose a complex debt restructure in the coming weeks.
Gordon is unable to comment due to non-disclosure confidentiality agreements, but it is believed his lawyers and advisers, including KPMG, are devising a deal that would increase his economic interest in Ten without increasing his shareholding.
The owner of independent regional television company WIN Corp cannot increase his stake in Ten due to restrictive media ownership and concentration laws that prevent broadcast licence owners from reaching more than 75 per cent of the population.
Under one scenario, Mr Gordon can assume full responsibility for the debt guarantee already in place or through the issue of new convertible notes in exchange for an injection of funding.
The proposal is likely to be lodged with Ten’s independent directors and adviser Citigroup within weeks.
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