A couple of promising points to hold onto listed in this...

A couple of promising points to hold onto listed in this article. Prospective class action getting a bit of attention and potential momentum now.



http://www.theage.com.au/business/m...-action-and-compensation-20170829-gy6e42.html
Ten shareholders calling for class action and compensation


Ten's retail shareholders are calling for a class action or regulatory investigation into boardroom secrecy ahead of the broadcaster's administration, as it becomes clear they will be completely wiped out by the deal KordaMentha and PPB Advisory have struck with US broadcasting giant CBS.  

Shareholder John Homewood says he would "love to have a class action" and has been frustrated by the lack of communication to shareholders in recent months.

"It just seems to me that these administrators ... it is as if the poor old shareholder has been pushed out of the way of a business that as for all intents and purposes was viable," he told Fairfax Media.

"I have come to the realisation that effectively shareholders will have their equity interest just transferred over to CBS. It is really the lack of information being provided that has got me a bit hot under the collar."

Mr Homewood owns 1.1 million shares in Ten and stands to lose hundreds of thousands of dollars.

He said he preferred the deal suggested by Lachlan Murdoch and Bruce Gordon, which would have seen shareholders receive about one-fourth of the value of their equity back and Ten re-listed on the Australian Securities Exchange. Their offer recently received competition regulator approval, but was not accepted by administrators and required a complex ownership structure to fit within media ownership laws.

Mr Homewood added that Ten hasn't published any financial information in months because of the administration process. It is also unlikely to hold an annual meeting.

Shareholder Adam O'Neill said  he has already spoken to the market regulator and legal firms specialising in class actions about Ten's treatment of retail shareholders.

"I am not going to let it rest," Mr O'Neill said on Tuesday.

He purchased 9000 shares between 2013 and 2017 and calculates he has lost about $20,000. He believes more shareholders will come forward as they realise their equity has disappeared.

"Two shareholders have acted in their personal interest to put the company into voluntary administration, disregarding the vote or concern of 17,000 shareholders," he said.

Mr Murdoch and Mr Gordon informed Ten's board on a Friday evening before a long weekend they were no longer willing to act as guarantors for Ten's $200 million loan facility. This move led Ten's board to halt shares before the market opened on Tuesday, June 13 and then put the company into administration the next day saying it had "no choice".

Shareholders will not get a vote on the CBS takeover and have not been able to trade shares since June 13. It has since emerged that Ten's board knew since early May that the third shareholder guarantor, James Packer, was also pulling out, but did not tell the market.  

The Australian Shareholders Association (ASA) is investigating legal action and will be lobbying Treasurer Scott Morrison, who gets the final say in Foreign Investment Review Board decisions, to "see if in part of his review of this proposal he can obtain a better deal so that shareholders can get some compensation".

"We are very upset that shareholders are likely to lose everything in the CBS deal," ASA director Allan Goldin said.

Meanwhile shares in Seven and Nine dropped as it dawned on investors Australia's media landscape may suddenly go from a two-player market with a weak third player, to a proper three-way battle.

While CBS Corporation's proposed takeover still needs to clear several hurdles the market appear to be much more concerned about the strength of a CBS-owned Ten than they were about the mooted Lachlan Murdoch-Bruce Gordon-owned Ten. And the air of urgency surrounding media reforms has gone.

Seven's shares dropped 4.7 per cent on Tuesday to 70¢, the lowest price since June 27, while Nine's shares have dropped 4.6 per cent since Monday to close at $1.31.

Southern Cross Austereo has also been caught in the rip because it switched network affiliations from Ten to Nine in 2016-17. Its shares dropped 1.8 per cent to $1.31.

Southern Cross' recent full-year results showed its television audience share in regional Australia was up from 22.6 to 32 per cent thanks to Nine's content. This boosted television advertising revenues by 22.5 per cent to $42.8 million.

"I just get the feeling that the market was a bit too relaxed and complacent about Ten given that Bruce Gordon and Lachlan Murdoch were the front runners," media and telecommunications analyst at Morning Star, Brian Han, said.

"And all of a sudden we have a global content and broadcasting powerhouse that knows how to run a television network [taking over]".

Mr Han added that the streaming service Stan, which is jointly owned by Nine and Fairfax Media (owner of The Age and The Sydney Morning Herald), may also be affected if CBS launches its All Access streaming service here because Stan has rights to CBS's premium Showtime content in Australia.  

However, Stan's chief executive, Mike Sneesby, said its deal is long term and even CBS won't be able to stream the shows for which Stan has rights, such as Billions and Twin Peaks.

"As part of the output deal Stan has, Showtime production will continue to stream on Stan, they won't be able to be streamed or broadcast on any other platform," Mr Sneesby said.

"Stan will be the only place you will be able to stream it."