Mallam quits Ten board amidst Gordon reverse

James McGrath
By James McGrath | 1 December 2014
 
Ten's Pyrmont building has gotten a face lift

Bruce Gordon's representative on the Network Ten board, Paul Mallam, has stepped down as the dance to acquire network Ten continues in earnest.

Network Ten told the Australian Securities Exchange this morning in a statement that Mallam had stepped down from the board, but didn't elaborate on why he was departing.

Mallam has been Bruce Gordon's representative on the board for a number of years, and his sudden departure raises further speculation about Gordon's intentions with Ten.

Gordon currently holds about 15% of the issued share capital of the company, and has previously voiced his concerns about a takeover bid launch by a Discovery Communication and Foxtel.

However, this morning's Australian Financial Review speculated that Gordon has softened his stance [$] on the merger in light of a dual-class share structure being floated as part of the deal.

Such a move would allow shareholders to own the second class of shares “up to a certain level”, giving them a financial stake in the company while handing control over to the joint bidders.

The departure of Gordon's representative on the board and the lack of an apparent replacement is sure to stoke speculation as to Gordon's voting intentions, and comes shortly after Gina Rinehart left the Network Ten board.

She has been replaced by John Klepec, who also sits on the board of Rinehart-owned Hancock Prospecting.

For more stories:

MCN ad alliance spruiked

Rinehart quits Network Ten board

Faith to come back: McLennan

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