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Australia's Ten Network shares dive 25 percent after cash call
December 10, 2012 / 3:32 AM / 5 years ago

Australia's Ten Network shares dive 25 percent after cash call

MELBOURNE (Reuters) - Shares in Australia’s loss-making Ten Network Holdings sank 25 percent on Monday as they resumed trading after Ten’s second cash call in under six months.

Australia’s third-ranked television network tapped its shareholders, including billionaires Lachlan Murdoch, James Packer and mining magnate Gina Rinehart, for a A$230 million ($240 million) capital raising program last week to pay down debt.

The shares were down 24.6 percent to A$0.245 at 6.35 p.m. EST after touching a low of A$0.24.

Ten has been struggling to find hit shows and has lost market share to top-ranked competitor Seven Network and the Nine Network, which is now owned by its lenders.

Lachlan Murdoch, son of News Corp Chairman Rupert, and James Packer, the son of late media billionaire Kerry Packer, bought into Ten in 2010.

Murdoch, Packer and Rinehart are estimated by local media to have lost over A$350 million on their combined investment in Ten over the past two years.

Reporting by Victoria Thieberger; Editing by John Mair

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