CanWest refuses to deny sale rumours

By Duncan Bridgeman

Friday 19th April 2002

3 NEWS: Potential buyers for TV3 and TV4 include the Ten Network and Sky TV

CanWest yesterday would not be drawn on speculation its New Zealand assets were up for sale, despite detailed news reports from across the Tasman.

But CanWest's vice-president of corporate affairs, Geoffrey Elliot, said the future of its New Zealand operations would be carefully considered.

"They still remain an important part of our operations - not only the New Zealand assets but also our interests in Australia and Ireland."

Potential buyers included the Ten Network - 58% owned by CanWest - Kerry Packer's Publishing & Broadcasting, the Austereo radio network and New Zealand pay television operator Sky TV.

The most interesting option was a sale to Sky as it would give it virtual monopoly in pay television and easy pickings in free-to-air broadcasting in New Zealand.

Another option to raise money for the troubled Canadian parent was a public share float of the minority shares, with the majority owned by a consortium of buyers.

"Obviously if there was a review of assets, whether it was TV3 or any other CanWest assets, there are various options for raising cash and an IPO would be one of them," Mr Elliot said.

"I'm not saying that that's what we're looking at. I'm just saying there are a number of options that we might or might not be looking at."

However, a source said talk of a public float and a consortium could be a ruse and that Ten's institutional investors were wary of any deal with CanWest New Zealand.

Previously Mr Asper has had trouble convincing Ten's reluctant institutional investors to buy CanWest New Zealand, partly because he was asking too much.

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