Report: Foxtel considered joint TEN takeover

Foxtel considered a joint takeover of Network TEN with US private equity firm Providence Equity Partners, but decided against it, according to a report today.

The Australian Financial Review reports the companies explored a bid for 10 – 20% stake which would have allowed high-profile shareholders Lachlan Murdoch, Gina Rinehart, Bruce Gordon and James Packer to retain their combined shareholding of around 40 per cent.

But the bid did not proceed reportedly “for a number of reasons” including disagreements with Providence over price and structure.

TEN CEO Hamish McLennan had reportedly held discussions with Providence during a visit to Australia earlier this month.

AFR claims Providence is still working on a takeover proposal, with Foxtel to partner on content or marketing.

Both Foxtel and News Corp have long been rumoured as possible candidates for TEN acquisitions although the latter has repeatedly denied it.

Meanwhile The Australian today reports Bermuda-based billionaire Bruce Gordon recently increased his TEN shareholding to just under 15% after buying an extra two million shares.

Seven West Media proprietor Kerry Stokes also owns a stake of just under 5 per cent, just shy of the threshold where he would have to declare his interest.

TEN declined to comment to AFR.