Speculation that Discovery Communications had finally reached the end of its patience sent Network Ten shares downward this morning, despite Ten's previous urging of caution on speculation.
This morning the Australian Financial Review reported that the US communications giant had walked away from a joint bid with Foxtel for the network, as the takeover saga continues to drag on.
It is reported Discovery turned its nose up at an offer which would have given both parties in the joint venture a 14.99% stake and a board seat.
The original plan was for the Foxtel-Discovery joint venture to buy the assets of the company, with a 23c per share offer launched through advisors Citibank.
However, shareholder Bruce Gordon opposed the plan, launching a separate deal to recapitalise the company.
It is believed the joint venture and Ten were exploring ways to bypass Gordon's opposition to the original deal.
Despite Ten advising shareholders through the Australian Securities Exchange not to trade on speculation, that's what shareholders did.
Shares dived early today with its price down to 21c from 22c, but the price has stabilised since Ten put out its statement to the market.
"TEN urges caution in dealing in its shares on the basis of media speculation about potential transactions involving the Company," a Ten statement read.
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