QUEBECOR TO SPLIT UP SUN MEDIA TO TORSTAR
By Adnews Staff
The battle for ownership of Toronto-based Sun Media Corp. appears to be over. The company's two suitors, Quebecor Inc. of Montreal and Torstar Corp. of Toronto, have come up with an agreement to make them both happy. Under the deal, when Quebecor acquires Sun Media for $983 million, Quebecor will sell four of Sun Media's Ontario broadsheet daily newspapers to Torstar. The newspapers are The Hamilton Spectator, The Kitchener-Waterloo Record, The Guelph Mercury and The Cambridge Reporter. In addition, Torstar has agreed to provide an option for Quebecor, or a subsidiary, to purchase up to eight Ontario weekly newspapers from Torstar. Quebecor may also sell Torstar certain weekly Ontario weekly newspapers. Torstar mounted a bid for Sun Media in October, offering $748 million. The offer was increased to $900 million in November. Quebecor offered $983 million for Sun Media earlier this month. The Quebecor offer is still subject to shareholder approval, although it has been recommended by the board. Under completion of the Quebecor agreement, Sun Media properties will be merged with Quebecor's four daily newspapers and 56 weekly newspapers. The resulting company will control 21.6% of the daily newspaper circulation in Canada.