NZ media 'unlikely' to be carved up

Australia's media market is in a "frenzy" following the overhaul of ownership laws, but New Zealand companies are "unlikely" to be gobbled up and transformed into branch offices, says CanWest MediaWorks chief executive Brent Impey.

The NZX-listed broadcaster's Canadian parent, CanWest Global Communications, had retained Citigroup to examine opportunities across the Tasman.

CanWest Global has a 56.4 per cent interest in Australia's Ten Network and 70 per cent interest in CanWest MediaWorks.

Impey said TV3's "cornerstone" news and current affairs content showed differences between the New Zealand and Australian markets.

"To approach New Zealand and treat it like Perth is probably a recipe for disaster and I don't think anybody would do that."

Possible outcomes of the Citigroup evaluation included retaining the status quo, acquisition, divestiture, merger and combining Australian and New Zealand assets.

Impey said CanWest MediaWorks was undervalued by the New Zealand market and compared its earnings multiple of 8.2 with Australian media companies, such as Austereo at 13.9.

Forsyth Barr head of research Rob Mercer said talk of corporate activity was nothing new for CanWest but "it looks like there's a formal process now that confirms the possibility".

Shares in many Australian media companies had risen on news of the law reform but New Zealand was a different operating environment, he said.