CanWest offer a boost

By SIMON HENDERY

Another public company looks ready to disappear off the Stock Exchange board, with Canadian media conglomerate CanWest boosting its buyout offer to RadioWorks shareholders by 13 per cent.

The Business Herald revealed on Thursday that CanWest Global Communications was in talks with RadioWorks' large shareholders in a bid to clinch the 18 per cent of the company it does not own.

CanWest will offer $9.35 a share, $1.10 more than its last offer made in May.

Acquiring 2.2 million more shares would give CanWest 90 per cent control of RadioWorks and would trigger a compulsory full takeover.

RadioWorks is the country's second largest radio company and runs the Radio Pacific, The Edge, The Rock, and Solid Gold networks, plus 22 other local radio stations.

CanWest also owns TV3, TV4 and the More FM radio network.

Radio Pacific founder Derek Lowe, who is a RadioWorks board member and former chairman, sold a 5 per cent stake in the company this year.

Yesterday Mr Lowe said he had no regrets about selling for $8.25 a share, despite the latest offer.

"At the time I sensed they would make a full takeover bid but I sought some certainty at that point in my life.

"I've been able to reinvest some of that, so from a dollar point of view it's probably had no real impact on me. Fortunately, companies like Fletcher Energy have been kind to me."

Norton Moller, chairman of Energy Investments Taranaki, which holds 1.3 million shares, or 10.6 per cent of the company, said Energy Investments shareholders would discuss the offer over the weekend.

Energy Investments directors include RadioWorks managing director Stephen Joyce.

RadioWorks has about 800 shareholders. Aside from CanWest and Energy Investments, all have holdings of less than 2.5 per cent.

RadioWorks said yesterday that its board would meet on Monday to form a committee of independent directors to evaluate the terms of CanWest's offer and obtain an independent appraisal report.

Any recommendation by RadioWorks directors would be forwarded to shareholders after January 10.