Here's the article, Burnett (gifted, Mods, so no copyright...

Here's the article, Burnett (gifted, Mods, so no copyright issue):

CHAMP still keen on buying Eye Corp

Edited by Sarah Thompson and Anthony Macdonald

It seems to have become a case of when and for how much CHAMP Private Equity buys the Ten Network’s outdoor advertising business Eye Corp.

CHAMP presented a termination notice to Ten on Wednesday morning after the Network confirmed Eye Corp’s earnings were materially worse than expected.

However, CHAMP is understood to still be keen on the asset, which would bring synergies with its outdoor advertising business oOh!media.

The struggling Ten Network is eager for the cash. It needs the sale proceeds to reduce debt to create a buffer from its debt covenant ratios in case the advertising market deteriorates further.

Without it, Ten may be forced to reach out to shareholders in a capital raising. The company already tapped investors for $200 million earlier this?year.

Ten’s need to sell the asset appears more urgent than CHAMP’s wish to buy it, giving the PE firm the upper hand in the negotiations.

But resetting the deal also opens the door to rival bidders.

Still, it is in the interests of both parties to resolve the situation quickly and it is understood CHAMP may be willing to cut a deal at $125?million to $130 million – $15?million to $20 million less than its original offer price.

Citi analyst Justin Diddams forecasts the business will go for less, fetching cash proceeds of $80?million in FY13, followed by $40?million in FY15

Eyes (pun intended) will be on Ten’s balance sheet as it prepares to repay a $210 million United States private placement facility in March.