By Nick Stride
Friday 4th August 2000
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Ten chief executive John McAlpine said this week he had spoken to CanWest about selling Ten the TV3 and TV4 television stations, More FM and a 70% stake in RadioWorks.
He said the assets were a natural fit with Ten and would be better managed from Australia than Canada.
A deal, which Australian analysts think likely, would be worth more than $380 million.
CanWest this week surprised the Canadian media industry by buying the Canadian newspaper assets of Conrad Black's Hollinger International for $C3.5 billion ($5.2 billion).
A Credit Suisse First Boston research report said a sale would realise a substantial sum to offset the $C2.5 billion of debt CanWest will take on board to pay for the Hollinger acquisition.
It would leave CanWest with a 57.5% interest - the level it owns of Ten - in the assets and would provide scope for content and management synergies.
Ten is one of CanWest's best earners but its New Zealand operations lost $1.06 million in the May third quarter.
Those figures did not include Radioworks, which made $750,000 in the last full year.
Both television stations reported losses while More FM posted a lower $C825,000 ($1.2 million) profit.
CanWest did not comment on the results and no New Zealand dollar figures were provided.
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