CanWest coy about selling and leaving

By SIMON HENDERY

TV3's heavily indebted Canadian owner, CanWest Global Communications, is reportedly close to selling out of New Zealand.

Rumours of the international media company's pending departure have been around for almost two years, and the Sydney Morning Herald said yesterday that CanWest would formally approach potential buyers for its local TV and radio businesses in the next fortnight.

Quoting industry sources, the paper said CanWest was preparing to call for official expressions of interest in its New Zealand operations as it looked for ways to reduce its US$3 billion ($6.79 billion) debt.

CanWest owns TV3, TV4, the More FM network and RadioWorks, which includes the Radio Pacific, Solid Gold FM, The Rock and The Edge networks, plus about 20 other local stations.

The businesses are expected to fetch more than $250 million.

Speaking from the company's Winnipeg headquarters yesterday, CanWest's vice-president, corporate affairs, Geoffrey Elliot, said: "As far as we are concerned [the Sydney Morning Herald report] is purely speculative and we never comment on speculation."

The chief executive of CanWest's New Zealand operations, Brent Impey, also refused to comment.

CanWest bought TV3 in 1992 when it was in receivership and has struggled against TVNZ since. In November it reported a $12.3 million annual loss.

CanWest's radio businesses have been more successful, last year notching up a $22.1 million profit.

The Sydney Morning Herald said potential Australian buyers for CanWest's interests include the Ten network (itself 58 per cent owned by CanWest), Kerry Packer's Publishing & Broadcasting and the Austereo radio network.

It said New Zealand pay television company Sky TV was also a possible buyer. Sky chief executive John Fellet would not comment yesterday.

Another option for CanWest would be a public share float.

Broker JB Were is understood to be advising CanWest on the sale process but its chief executive, Clark Perkins, also declined to comment yesterday.

CanWest has been saddled with debt since its 2000 purchase of Conrad Black's Canadian newspaper assets for C$3.5 billion.

It is understood the Maori Television Services board has been negotiating to buy or lease TV4 as a platform for the planned state-funded Maori television channel.

The delay in getting the Maori channel on air, could be due to CanWest's possible sale.