Discovery, Foxtel to launch "lowball" bid for Australia's Ten - media
SYDNEY (Reuters) - U.S. media giant Discovery Communications and Australian pay-TV company Foxtel will launch a "low-ball opening takeover bid" for Australia's Ten Network Holdings, The Australian newspaper said in an unsourced report on Tuesday.
Ten, which had lowest ratings of Australia's three commercial broadcasters, last month appointed investment bank Citigroup Inc to assess "a range of potential strategic options" amid reports of takeover interest from media and private equity companies.
A non-binding cash and share offer of A$020-A$0.25 per share would be made on Tuesday and value Ten at A$510 million-A$664 million, The Australian reported.
Under the mooted deal, Foxtel will take a 14.9 per cent stake in Ten as part of a dual-class shareholder structure that allows the major shareholders to retain voting power, it said.
Discovery did not immediately respond to request for comment outside regular U.S. office hours. Ten and Foxtel, which is quarter owned by Rupert Murdoch's News Corp, were not immediately available for comment.
Murdoch's son Lachlan is one of Ten's biggest shareholders, along with mining magnate Gina Rinehart and casino mogul James Packer.
(Reporting by Lincoln Feast)
