Trio in bid to block court approval of Ten Network takeover...

Trio in bid to block court approval of Ten Network takeover


People leave the Channel Ten building in Sydney. (AFP PHOTO/William West)

• The Australian
• 2:45PM October 31, 2017
• Save
• • Share on Facebook
  • Share on Twitter
  • Share on email
  • Share more...
• DANA MCCAULEY
  
  Media writer
  Sydney
  @Dana_Adele
  

Ten’s takeover by CBS has been further delayed by a trio of disaffected shareholders opposing the deal’s approval by the Supreme Court of NSW.
The court hearing, which began this morning and was initially listed for up to three days, could now drag on until at least Friday after lawyers acting for Ten’s receivers and administrators sought to introduce a new report into evidence.
Justice Ashley Black adjourned today’s proceedings early to give the shareholders time to read the report.
The case got off to a halting start this morning, when the deal’s opponents were joined by a former stockbroker who made a last-minute application to join as an interested party.
With the court’s approval the only thing standing in the way of the troubled free-to-air broadcaster’s sale to the US giant after the deal was approved by the Foreign Investment Review Board, Ten boss Paul Anderson will no doubt be hoping for a swift resolution. The network’s ratings have fallen dramatically since the company went into administration and 21st Century Fox ripped up its $376.8m contract to provide shows including The Simpsons and Modern Family.

• READ MORE
• Fox terminates Ten dealDARREN DAVIDSON
• Murdoch, Gordon opt out of TenNICK TABAKOFF

Former stockbroker Stephen Lewis Matthews, 63, sought leave to appear as an interested party despite not holding any Ten shares.
The serial self-funded litigant, who told The Australian he had appeared unsuccessfully in eleven legal cases over the years — including one that took him to the High Court of Australia — argued that he should have his say on the Ten sale because his son had bought 250,000 contracts for difference (CFDs) on the company’s shares, at a time when the shares were trading at 20 cents.
“My company has provided an indemnity to my son in connection with all his CFD trading positions,” Matthews told the court.
“Therefore I have an interest ... I haven’t just casually dropped by the court.”
After Justice Black explained the possibility that costs might be awarded against him if he was unsuccessful, Matthews gracefully bowed out.
The court went on to hear submissions from Robert Newlinds SC on behalf of Ten’s receivers and administrators KordaMentha, which relied on an independent expert report by KPMG that deemed the network’s shares worthless.
Mr Newlinds told the court the KPMG report showed that Ten’s shares (TEN) had a negative valuation even under the best case scenario, once deductions were made for debts owed to creditors including CBS and Fox.
Shareholders Yunfeng Du, David Gubbay and Chun Leung have challenged the expert report in a bid to block the transfer.
The three men, who are also self-represented, required some assistance from Justice Black with regard to court etiquette and procedure, with His Honour advising them when to sit and stand and reminding them that they ought not speak for each other, while emphasising the information he provided did not constitute legal advice.
Mr Newlinds also told the court of a plan B under which Ten’s administrators intend to ensure the sale goes ahead regardless of whether it approves the shares transfer.
Under that plan, detailed in the KPMG report, the company’s assets would be sold to CBS under the same conditions as the proposed deal.
The hearing will continue on Wednesday.