Canwest: Australia net halts share issue

Ten Holdings finds investor interest is not acceptable

TORONTO -- Canadian broadcaster Canwest Global Communications Corp. said Wednesday that Australia's Network TEN will not proceed with a proposed share issue because of "difficult financial market conditions."

Ten Holdings, which runs Network TEN, on Monday in a market update said it would issue 120 million shares, or about 13% of its outstanding stock, to raise cash.

But Winnipeg-based Canwest Global, which owns 56.6% of Network TEN, said Ten Holdings did not find investor interest in the proposed equity offering "acceptable."

"We made it clear from the outset that this equity offering was being undertaken proactively and that we would not proceed with it unless we could achieve an acceptable outcome," Ten Holdings' executive chairman Nick Falloon said in a statement.

"Ten Holdings remains well capitalized and is comfortably within the requirements of its lending facilities," Falloon added.