Quebecor forced to up its bid to win Osprey Media Income Fund

The unitholders of the Osprey Media Income Fund will probably put Torstar and Black Press on their Christmas card list this year. Quebecor Inc. was trying to buy Osprey for $7.45 a unit when Black came along and offered $8.25. (See previous posts. No fair, said Quebecor, we had a lock on this. Not so, said the courts. Oops, said Quebecor and upped its bid to $8.45, which will probably do the trick (and give Black Press a premium on the shares it has already acquired.

Toronto Star: Quebecor presented its new offer immediately after failing earlier Thursday to get an Ontario court to block Osprey from negotiating with Black Press. Quebecor Media announced May 31 it had a deal to buy Osprey, which owns a group of Ontario papers including some of the country’s oldest dailies. But Black Press, run by David Black — no relation to Conrad Black — announced a higher offer on June 27, sparking the court battle with Quebecor.

“I think Black Press has to realize that QMI (Quebecor) won’t let this one go,” said Adam Shine, a media analyst with National Bank Financial. “I’d be surprised to see the bidding war go higher, as these assets aren’t even worth what’s currently being offered.”