Packer Buys into Media: Network Ten

Billionaire media mogul, James Packer bought into Ten Network (ASX:TEN) in a share raid, picking up 15.6 percent or $250 million worth of the media company's shares. The purchase was made through a Packer family private company Prime Capital, a subsidiary of his private company Consolidated Press Holdings. There is a rumour that Packer be pushing for a 20 per cent stake, a move that will allow him to seek board representation at the network. Packer’s investment bank, UBS managed the stock transaction.

UBS offered $1.50 a share, a modest premium to yesterday's closing price of $1.41. Ten shares are trading well below recent highs of $1.90. Shortly after 6pm, 163 million shares, or 16 per cent, of Ten stock was crossed through the market. Ten's share register has been open since the Canadian broadcaster CanWest was forced to dump its majority 50 per cent stake after hitting debt troubles in the financial crisis.

Packer sold large portions of PBL Media which owned brands such as Nine Network and ACP Magazines, to private equity firm CVC Asia Pacific and there is talk the raid has been motivated by the recent underperformance of Ten’s shares and question marks over the network’s growth strategy.