Finance Finance News Network Ten: CBS raises offer ahead of creditors’ meeting

Network Ten: CBS raises offer ahead of creditors’ meeting

Network Ten Sydney Head office
CBS has increased its bid for Network Ten.
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US broadcasting giant CBS has increased its bid for Network Ten, ahead of Tuesday’s creditors’ meeting in Sydney.

It is understood that CBS’s new bid will pay unsecured creditors just over $40 million — an increase of $8 million over its original bid.

It comes after media moguls Bruce Gordon and Lachlan Murdoch submitted their latest bid last Friday, upping their offer to unsecured creditors from $35 million to $55 million.

But the extra $20 million in the Murdoch-Gordon bid is actually a payout to CBS, Ten’s largest creditor.

When the CBS payout is excluded, the US broadcaster’s new $40 million bid appears to be the higher offer.

Mr Gordon, the owner of the regional WIN Network, attempted to scuttle CBS’s bid for Network Ten by launching an action in the Supreme Court of NSW.

However, Mr Gordon lost that case on Monday and was ordered to pay the legal costs of CBS and Ten’s administrators KordaMentha.

He was seeking orders for today’s creditors’ meeting to be restrained, CBS’s voting rights be severely restricted (to the small nominal amount of $1.00), and findings that KordaMentha’s creditors’ report was “deficient”.

Justice Ashley Black did not grant any of those orders.

The judge also ruled that KordaMentha gave creditors enough information to creditors about the original Murdoch-Gordon proposal, and its reasons for supporting the CBS offer.

While Mr Gordon is expected to appeal against the decision, the NSW Court of Appeal has confirmed that no appeal has been filed as yet.