Stakes rise for control of radio

By SIMON HENDERY

Canadian media giant CanWest is raising its offer to RadioWorks shareholders in a fresh bid to win full control of one of this country's two biggest radio networks.

RadioWorks directors issued a "don't sell" notice to shareholders yesterday, saying the company was "aware that a takeover offer may be forthcoming for all of the shares in the company."

RadioWorks chairman and CanWest Global Communications head of all New Zealand operations, Brent Impey, would not comment further on the statement yesterday.

Norton Moller, chairman of Energy Investments Taranaki, which holds about 9.5 per cent of RadioWorks, said last night that his company had been in talks with CanWest and expected an offer to be made officially before the end of the week. "I believe the offer they will make will be fair and we will consider that when it comes through," Mr Moller said.

RadioWorks' stable of stations includes Radio Pacific, The Rock, and The Edge networks.

CanWest, which also owns TV3, TV4 and the More FM radio group, has boosted its holding in RadioWorks to 71.8 per cent this year after offering shareholders $8.25 a share.

One of those to take up CanWest's earlier $8.25 offer was RadioWorks' then chairman, veteran broadcaster Derek Lowe, who sold his 5 per cent stake in the company in May.

RadioWorks managing director Steven Joyce, who is also a shareholder in Energy Investments, said: "I think it will all probably come out in the next couple of days."

A single parcel of 192 RadioWorks shares changed hands on the Stock Exchange yesterday at $8.25, up 65c on the last sale eight days earlier.

Last month, RadioWorks reported a $490,000 profit for the five months to August 31, compared with an $8.8 million loss for the previous year.