CanWest tipped to sell NZ operations for $350m

CanWest is tipped to decide on the sale of its New Zealand operations by the end of the week.

The Sydney Morning Herald reported yesterday that Austereo and Prime Television were expected to stump up a combined $350 million for the Canadian company's New Zealand radio and television assets.

CanWest yesterday refused to comment on the report. The paper said sources had told it CanWest was likely to reap $350 million from the sale - at the top end of its original expectations.

CanWest is under pressure to sell its New Zealand operations to reduce its C$3.5 billion ($4.69 billion) debt.

Last week the company said its television businesses, TV3 and TV4, had lost C$1.6 million ($2.14 million) during the three months to May 31, although this was a marked improvement on its C$3.8 million ($5.09 million) loss for the same quarter of last year.

The newspaper said Prime New Zealand, owned by Australian regional TV company Prime TV, was the leading contender to snap up TV3 and TV4, with a bid believed to be over $100 million. Another bidder was reported to be CanWest-owned Australian station Channel Ten.

Australian FM radio station chain Austereo was believed to be leading the bid for CanWest's MoreFM and Radio-Works radio networks, with a bid of more than $250 million.

- NZPA