Here's why CBS Corp's bid beat Murdoch and Gordon

Arvind Hickman
By Arvind Hickman | 12 September 2017

CBS Corporation's bid for Ten delivered better returns to creditors and was less complicated than a bid by Bruce Gordon and Lachlan Murdoch.

This is the verdict of Ten's administrators KordaMentha, which provided extra details of both bids in a supplement to the creditors report after Gordon launched a case in the NSW Supreme Court.

The report shows that CBS's bid pledged to deliver $12.43 in every dollar claimed by creditors compared to Birketu (Gordon's investment company) and Illyria's (Murdoch's investment company) $10.58 (see chart below).

CBS-vs-BI.JPG

In considering both bids, administrators looked at the financial return to creditors, the complexity and risks associated with conditions of both bids (see below), including the execution and structure and the time frame for completion of payments to creditors.

“Both the receivers and administrators, having regard to their respective obligations, concluded that the CBS proposal was superior to the competing proposal for creditors generally," the report stated.

"This view was also supported by Moelis and the receivers having conducted the sale process and engaged with all bidders throughout."

CBS-vs-BI-risks.JPG

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