ASTRAL MAY SEEK RADIO STATIONS AFTER LOSING CHUM BID Kevin Bell – Bloomberg
Astral Media Inc., the Canadian broadcaster that lost a bid for Chum Ltd. to Bell Globemedia Inc., may seek to buy its rival's radio stations if they're for sale after the C$1.4 billion ($1.2 billion) deal is complete.
Chum's 33 radio stations would ``fit perfectly with ours, and obviously we would be a very interested party to discuss that,'' Astral Chief Executive Officer Ian Greenberg said today on a conference call to discuss his Montreal-based company's third-quarter financial results.
Bell Globemedia yesterday agreed to buy Chum and announced plans to sell six television stations branded as ``A-Channels'' upon completing the transaction. The company hasn't said whether the radio stations are for sale. Astral won't bid for the A- Channels because they aren't ``a good fit,'' Greenberg said.
Potential bidders for the A-Channels include Rogers Communications Inc., closely held Jim Pattison Group and Montreal-based Quebecor Inc., whose media division bought the Toronto station SunTV from Chum in 2004, National Bank Financial analyst Adam Shine said today in a note to clients.
Pattison Group, which doesn't want the TV stations, may bid for radio stations in western Canada if they become available, Chief Executive Officer Jim Pattison said in an interview. Pattison Group, based in Vancouver, operates three TV stations and 17 radio stations in western Canada.
Rogers operates 46 radio stations and three television stations. Rogers spokeswoman Jan Innes declined to comment. Quebecor spokesman Luc Lavoie didn't immediately return telephone calls seeking comment.
Corus May Acquire
Corus Entertainment Inc., which operates 51 radio stations as well as specialty and pay-TV stations, also will seek to buy more media assets, Chief Executive Officer John Cassaday said today in a conference call with analysts, without elaborating.
Astral has 29 radio stations in Canada, three-quarters of which are in the province of Quebec. The company was the ``only other logical suitor'' for Chum and could manage an all-cash bid of about C$38 a share, Scotia Capital analyst Andrew Mitchell said today in a note to clients.
``That clearly reinforces the attractiveness of the Bell Globemedia bid,'' Mitchell said. The offer valued Chum's common shares at C$52.50 each and the Class B shares at C$47.25.
Bell Globemedia Chief Executive Officer Ivan Fecan wasn't immediately available to comment.
``We made what we considered a fair offer'' for Chum, Greenberg said. ``We went as far as we could.''
Astral shares fell 56 cents, or 1.5 percent, to C$37.44 by the 4 p.m. close of trading on the Toronto Stock Exchange. They gained 9.4 percent yesterday, after Bell Globemedia announced plans to buy Chum. Chum's B shares rose C$15.39, or 49 percent, to C$46.64.
Astral also announced plans today to acquire a 20 percent stake in Canada's Teletoon animation network with Corus for about C$96 million. |