INL says 'no thanks' to tempting Canwest offer

By Duncan Bridgeman

Friday 12th July 2002

The country's biggest media group yesterday ruled itself out as a potential bidder for Canwest's loss-making TV3 and TV4 channels.

Independent Newspapers chief executive Tom Mockridge yesterday scotched rumours his group would through acquisition buy a dominance in both television and the country's commercial radio business.

INL already holds 66.3% of Sky Television and owns most of the country's newspapers. The company is 44.5% owned by Rupert Murdoch's News Ltd.

Rumours of INL's interest were fuelled when media sources revealed Canwest had made a presentation to INL last year in a bid to arouse the Murdoch empire's interest.

But Mr Mockridge, who is also chairman of Sky TV, said INL had not carried out any due diligence on Canwest.

"We are not interested [in the Canwest deal]. We figure we have enough on our plate with Sky Television at the moment. Sky TV is doing very well," Mr Mockridge said.

"Pay television is the growth end of the market ... I wish the other [contenders] good luck."

Sky Television chief executive John Fellet has said Sky would be interested in the Canwest television operations but not if it had to become involved in a competitive bidding process.

Canadian-based Canwest is selling TV3 and TV4 and its radio operations More FM and the Radioworks network to help cut its $C3.8 billion debt burden.

Early indications are the New Zealand sale might only cover 20-25% of the planned $C800 million debt reduction programme, which has been named as the company's top priority.

Media industry sources remain cynical about the bidding system. They believe the process is a method employed by Canwest to reveal the true market price of their television and radio assets so they can then be transferred to Australia's Channel Ten, in which Canwest already holds a 57.5 per cent interest.

However, Kerry Packer's Publishing & Broadcasting is not out of the picture and is also thought to be a strong contender. Mr Packer controls the Nine Network in Australia and has an option to take up a 50% stake in Prime TV in New Zealand, to which it supplies programming.

Other bidders were said to be Australian companies Austereo and RG Capital, and a consortium headed by Julie Christie's Touchdown Productions.

Final bids for the assets are due in two week's time.

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