TRN eyes bid for CanWest assets

By KARYN SCHERER

New Zealand's largest radio company has indicated an interest in buying TV3, TV4 and its main radio rival if they are put up for sale by their Canadian owner.

The Radio Network (TRN), which has more than half the radio advertising market, said yesterday that it would be keen to talk to CanWest Global Communications about a possible sale.

Speculation about CanWest's plans for its New Zealand assets was bubbling last week, after Australia's Ten Network hinted it might be an interested buyer. Ten, which is Australia's third largest television network, is 57 per cent owned by CanWest.

On Friday, CanWest's corporate affairs manager denied a sale was on the agenda, but the company's chief executive, Leonard Asper, confirmed this week it was "not out of the question."

Mr Asper also described a sale of the New Zealand assets as an "obvious way" to strengthen Ten.

TV3 is already believed to be considering ways it can cooperate with Ten on sales, and it has also acknowledged benefits in sharing programming and carrying out joint productions with the network.

However, there are no obvious synergies for CanWest's radio assets, which include a 72 per cent stake of RadioWorks.

TRN chief executive Kevin Malone said yesterday that he hoped CanWest would be willing to consider a bid from TRN, as it might get a better price.

Mr Malone said he believed it could persuade the Commerce Commission to accept a sale to TRN, although it would "obviously" need to restructure its existing assets.

He said the company would also be interested in TV3 and TV4.

TRN is partly owned by Wilson & Horton, publisher of the NZ Herald. It also partly owned by Clear Channel, a United States-based media company with 19 television stations in the US, outdoor advertising assets, and more than 1000 radio stations worldwide.

TV3's managing director, Graeme Hunter, agreed last week that there was a "certain merit" in a sale to Ten.

However, he reiterated yesterday that he believed any sale could be some time away. "If anything did eventuate I don't see it happening quickly. It could be a considerable period of time down the track."

Mr Hunter said there would probably be other players who would also be interested in buying the assets "if we decided to divest the assets, which isn't part of the plan at this stage."

It has been estimated a sale would reap CanWest at least $300 million, based on a multiple of 10 times the assets' current profits.