* Selling shares at A$0.20, 38.5 pct discount
* Shareholders include billionaires Murdoch, Packer,
* Ten struggling with falling ratings, revenues
* Shares on trading halt, down 60 pct this year
MELBOURNE, Dec 6 Ten Network Holdings Ltd
, Australia's third-ranked television network, announced
a steeply discounted A$230 million ($240 million) capital
raising on Thursday as it struggles to buy hit programs to
counter a weak advertising market.
The offer, priced at A$0.20 per share, a 38.5 percent
discount to Ten's last closing price on Tuesday, is the
company's second capital raising in less than six months.
Chief Executive James Warburton, who just months ago
reassured investors that there would be no need to raise fresh
cash, said advertising conditions and Ten's revenue performance
had continued to deteriorate since it announced its full-year
results on Oct. 18.
Australian newspapers and television networks are facing a
tough market, with advertising depressed by a consumer spending
drought and competition intensifying on the internet.
Ten reported a A$12.9 million loss for fiscal 2012, with
advertising revenue down 14 percent as viewer ratings fell and
it axed flops such as "Everybody Dance Now," hosted by Sarah
Murdoch, daughter-in-law of News Corp Chairman Rupert
Murdoch and the wife of Ten director Lachlan Murdoch.
The network, which also counts billionaires Gina Rinehart
and James Packer among its top shareholders, competes with
top-ranked Seven Network and the Nine Network.
Ten is locked in a spiral of falling ratings and revenue
that makes it difficult for the network to buy the programs it
needs to turn its fortunes around.
Ten said most of the proceedings from the capital raising
will be used to repay a $125 million private debt due in March
2013, with the remaining proceeds used to fund restructuring
costs and fund working capital for general purposes.
Following the capital raising, and the earlier A$200 million
share placement, the company will have an overall net cash
position of around A$45 million, it said.
Warburton said Ten will continue to cut costs "whilst
maintaining our programming schedule."
Key programs for the 2013 ratings season include
"MasterChef" and "The Biggest Loser."
The company requested a trading halt, in force since
Wednesday, remain until December 10.
Media stocks have been among the market's worst performers
in 2012. Ten shares have fallen about 60 percent so far this