Jun 28, 2007 04:30 AM RITA TRICHUR http://www.thestar.com/Business/article/230219
The battle for Osprey Media Income Fund intensified yesterday after the newspaper publisher received a $404.5 million takeover bid from Black Press Ltd. that trumps a previous offer from Quebecor Media Inc.Markham-based Osprey, which owns daily newspapers around Ontario, saw its units soar on the news. It said Quebecor Media now has until July 5 to either match or top the Black Press offer. If it fails to do so, Osprey will pay Quebecor Media a break fee of $15 million and accept the offer from Black Press.
Quebecor Media, the media division of Montreal-based communications giant Quebecor Inc., had tabled a $355.5 million proposal on May 31. Spokesperson Luc Lavoie said the company is not contemplating a higher bid and would not speculate about one emerging down the road.Black Press, a Victoria-based newspaper publisher, is offering $8.25 per unit for Osprey. That tops Quebecor Media's current offer by $1 per unit. CEO David Black said Osprey's newspapers would give his company, which primarily operates in western Canada and the United States, a solid foothold in the key Ontario market. "I think that newspapering in Ontario is just good business," Black said in an interview.
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