SUN MEDIA TURNS DOWN TORSTAR
By Adnews Staff
Toronto-based Sun Media Corp. has rejected Torstar Corp.'s hostile takeover bid because its $748 million offer is too low. The board stated this week that the offer is conservative and does not take into account Sun Media's recent acquisitions in the Southern Ontario market. The non-voting shares offered by Torstar are unacceptable because they won't give Sun Media shareholders any influence on the future decisions of Torstar. In addition, the Torstar offer would create almost a monopoly for local retail and classified advertisers in Toronto and southern Ontario. If the bid succeeds, Sun Media says Torstar would control over 80% of the retail and classified advertising in major daily newspapers in Toronto. Sun Media is actively considering other alternatives to the Torstar offer. Southam Inc. of Toronto and Quebecor have expressed interest in the company. Sun Media publishes seven daily newspapers in major urban cities in Canada, as well as seven daily community newspapers, 19 weekly community newspapers and shopping guides in Canada and Florida, and 19 farming and other specialty publications.