No fair? Or was it a package deal?
A curious story in Saturday's Globe and Mail, Report on Business (sub requ'd), suggested that several of Canada's largest publishers were upset that an auction wasn't held so that they could have bid on the sale of Hollinger International's remaining Canadian newspapers and magazines.
The Globe being what it is, its story concentrated on the newspapers, although a fairly large component of the sale to Glacier Ventures International Corp. involved the attractive stable of trade magazines in the Business Information Group (BIG). Those, for Rogers Publishing, at least, were probably the prizes worth having. Rogers is not in the newspaper publishing business. And, while Transcontinental Media does own newspapers, the trade magazines were very attractive possible additions to its panoply of consumer and trade titles.
Given that the BIG magazines had been in play for more than two years (ever since Conrad Black said publicly that they were for sale for the right price) and fitfully for almost a decade, and that Glacier had been negotiating on this successful deal for almost a year, it seems strange that Rogers was surprised. Certainly David Black, owner of the Black Press Group in British Columbia, says he had actively known of the sale process and had bid, albeit unsuccessfully, on part of the package (presumably the lower mainland newspapers).
In fact, it would be very surprising if Rogers and Transcon had not been among several suitors who had informal discussions over that time. Hollinger shareholders would surely have insisted that the optimum price be pursued and that won't happen if they shut out some key players.
Hollinger spokesman Jeremy Fielding was quoted in the Globe story as saying: "Following discussions with numerous parties over the past two years, Hollinger International reached an agreement. The deal was based on a full price, certainty of closing and transaction structure. (emphasis added)"
Its possible to interpret this last phrase to mean that Rogers and Transcon did not want to buy the whole package (newspapers plus magazines), but hoped that the properties would eventually be auctioned in lots and that they could pick off the trade magazines (in Rogers case, direct competitors for some of its premier titles). Glacier, however,was apparently willing to purchase the full meal deal. And thereby may hang the tale.
The Globe being what it is, its story concentrated on the newspapers, although a fairly large component of the sale to Glacier Ventures International Corp. involved the attractive stable of trade magazines in the Business Information Group (BIG). Those, for Rogers Publishing, at least, were probably the prizes worth having. Rogers is not in the newspaper publishing business. And, while Transcontinental Media does own newspapers, the trade magazines were very attractive possible additions to its panoply of consumer and trade titles.
Given that the BIG magazines had been in play for more than two years (ever since Conrad Black said publicly that they were for sale for the right price) and fitfully for almost a decade, and that Glacier had been negotiating on this successful deal for almost a year, it seems strange that Rogers was surprised. Certainly David Black, owner of the Black Press Group in British Columbia, says he had actively known of the sale process and had bid, albeit unsuccessfully, on part of the package (presumably the lower mainland newspapers).
In fact, it would be very surprising if Rogers and Transcon had not been among several suitors who had informal discussions over that time. Hollinger shareholders would surely have insisted that the optimum price be pursued and that won't happen if they shut out some key players.
Hollinger spokesman Jeremy Fielding was quoted in the Globe story as saying: "Following discussions with numerous parties over the past two years, Hollinger International reached an agreement. The deal was based on a full price, certainty of closing and transaction structure. (emphasis added)"
Its possible to interpret this last phrase to mean that Rogers and Transcon did not want to buy the whole package (newspapers plus magazines), but hoped that the properties would eventually be auctioned in lots and that they could pick off the trade magazines (in Rogers case, direct competitors for some of its premier titles). Glacier, however,was apparently willing to purchase the full meal deal. And thereby may hang the tale.
posted by D. B. Scott at
6:00 am
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