Employees ‘poisoned’ over Murdoch Ten takeover bid

LAWYERS for Bruce Gordon have accused Ten Network administrator KordaMentha of “poisoning” the broadcaster’s employees against a takeover proposal from him and Lachlan Murdoch.

KordaMentha, which backed a rival bid by US media giant CBS, has been forced in the New South Wales Supreme Court to defend its actions during the Ten sale process. Andrew Bell, SC, for Mr Gordon’s private investment firm Birketu and his regional television operator and Ten affiliate Win Corporation, rejected claims Birketu was a “disappointed underbidder”.

Instead, Birketu was a “disappointed overbidder” and the administrator should put its proposal to creditors for a vote, Dr Bell told the court yesterday. KordaMentha’s press statements endorsing CBS’s offer had the effect of “poisoning” Ten employees against the bid by Birketu and Mr Murdoch’s private investment firm Illyria, he said.

Dr Bell said Mr Gordon’s and Mr Murdoch’s deed of company arrangement provided sufficient funds to allow Ten to continue operating and meet the obligations to staff.

Mr Gordon is seeking a court declaration KordaMentha failed to give creditors adequate information about a joint bid by Birketu and Illyria.

KordaMentha on Monday produced a more detailed, 94page supplementary report to creditors, after pressure from Mr Gordon and Mr Murdoch, with a press release defending the firm against accusations it failed to explain its decision.

Unlike the first report, the supplementary report lays out a previously undisclosed comparison of outcomes to creditors under the competing bids.

In another development, US media company 21st Century Fox, whose television and film studio 20th Century Fox supplies Ten with programming, was given leave to be heard in the dispute.

The hearing continues.