Time Warner eyes $588 million bid for Australia's Ten Network: media

SYDNEY (Reuters) - U.S. media giant Time Warner Inc (NYSE:TWX - News) has approached struggling Australian broadcaster Ten Network Holdings Ltd (ASX:TEN.AX - News) about a A$680 million ($588 million) takeover bid, the Australian Financial Review reported on Monday.

The indicative approach was pitched at A$0.25 per share and "only intended to facilitate further discussions with you", AFR reported, quoting an Oct. 6 letter from a Time Warner executive to Ten's advisers, Citigroup.

Time Warner declined to comment, while Ten Network and Citigroup were not immediately available for comment.

Last week, Ten announced it had appointed Citigroup to assess "a range of potential strategic options", as media reported it had fielded a joint takeover approach from U.S. cable television giant Discovery Communications Inc (NasdaqGS:DISCA - News) and Australian pay television firm Foxtel.

Shares in the company, which is backed by some of Australia's richest people including Lachlan Murdoch, Gina Rinehart and James Packer, have rallied on the takeover speculation, lifting from an all-time low of A$0.18 last month to close on Friday at A$0.27.

In October, the youth-focused channel, with the lowest ratings of Australia's three commercial broadcasters last year, posted a wider-than-expected annual net loss of A$168.32 million ($144.42 million) as revenue declined and costs rose.

(Reporting by Lincoln Feast; editing by Andrew Roche)