Share support for CanWest

Shares in TV3 owner CanWest MediaWorks are likely to be well supported today as talk mounts that it could be caught up in a wave of consolidation across the Tasman.

Media giant John Fairfax Holdings is said to be interested in buying Australia's Ten Network, 57.5 per cent owned by MediaWork's parent CanWest Global.

Local investors believe as part of this deal Fairfax could open talks over CanWest Global's 70 per cent stake in MediaWorks.

At the weekend, the Fairfax-owned Sydney Morning Herald reported the Fairfax board would meet today to discuss the viability of a bid.

The paper said Fairfax has "kicked the tyres" of CanWest's stake in Ten Network for some time. It said it had decide whether to make its play before an impending relaxation of cross-media ownership laws. It also said Fairfax had been keen to get scale and expressed an interest in television.

Australian media laws prevent one organisation from owning newspapers, television and radio broadcasting licences that serve the same region. Prime Minister John Howard has signalled a loosening.

CanWest's shares have had a stellar run, rising from $1.65 just after flotation last year to close at $2.32 on Friday.

CanWest MediaWorks chief executive officer Brent Impey last night declined to comment.

However, visiting New Zealand last year, CanWest Global head Leonard Asper said he looked forward to the relaxation of the laws.

Asper said CanWest would use Ten as the launchpad for any expansion in Australia, but the Canadian model of cross-media ownership the company had pursued would not necessarily be replicated in Australia.

He said any moves would not automatically have an impact in New Zealand.