champ still keen on buying on eye corp, page-5

Thanks, Burnett! Nice words there- appreciated.

I believe you are getting a real offer- $110m- from CHAMP for Eye Corp, according to today's AFR:

http://www.afr.com/p/business/companies/ten_receives_offer_for_eyecorp_4nUlUpP5MjICaYTm7u93aM

Ten receives $110m offer for EyeCorp

CHAMP private equity group is believed to have offered the struggling Ten Network about $110 million for its outdoor advertising business, Eye Corp, or 24 per cent below the original agreed sale price.

A re-negotiated agreement for Ten to offload Eye Corp may be reached as early as this week, said a source.

There is also speculation that Ten is looking to axe 40 staff from its Sydney operations as part of a nationwide voluntary redundancy program, to which staff have been given nine days to respond.

Last Wednesday, CHAMP un­expectedly terminated its agreement to acquire Eye Corp for $120 million up-front plus another $25 million deferred for three years.

The next day Ten chief executive James Warburton said the beleaguered TV broadcaster had re-engaged with CHAMP “with the aim of agreeing amended sale terms”.

Ten is desperate to sell Eye Corp to offset declining ratings and TV advertising revenue, and to make sure it does not breach debt covenant ratios.

CHAMP would merge Eye Corp with its oOh!media outdoor advertising business to grow its market share from about 16 per cent to 30 per cent.

Citigroup values Eye Corp at $120 million ($80 million up-front plus $40 million deferred for three years), while Morgan Stanley values it at a lower $100 million.

The Media Entertainment and Arts Alliance met Ten management on Monday to ask that staff be given longer than nine days to respond to the voluntary redundancy program, announced last Thursday. The union fears up to 116 job in its news unit – or about one-third – may be slashed.

A Ten spokeswoman said it had provided “clear and comprehensive details” about redundancies to staff. The network unveils its 2013 programming schedule this morning.

Ten’s share price rose 7 per cent yesterday to close at 30¢.