Canada: CTV Takeover & WIC Split.

Canada's largest private broadcaster, CTV, is rumored ripe for a takeover following a heavy trading period of its shares on the Toronto Stock Exchange. Meanwhile, Western International Communications (WIC), a Vancouver company with interests in TV, radio, satellite broadcasting and specialty television, is being divided among CanWest Global Communications, Shaw Communications and Corus Entertainment (the media and broadcasting arm of Shaw), subject to a review by the Canadian Radio-Television and Telecommunications Commission (CRTC) in April.

As for the prospective CTV takeover, CanWest and Shaw are considered the leading takeover candidates. However, industry analysts predicted other companies may join the fray, including the telecom company BCE, the printing and publishing house Quebecor and media giant Power Corp. Corus may also be in the mix.

Takeover suppositions have been brewing since last year when the Eaton family sold its 40 percent stake in CTV. The company is now held mostly by corporate investors.

Concerning the WIC split, CanWest and Shaw have been haggling over WIC's assets for almost two years. CanWest controls 46 percent of WIC's non-voting shares whereas Shaw holds 48 percent of its voting shares. Under the terms of the agreement, CanWest will pay $800 million Canadian (US$521) to acquire the remaining shares of WIC.

Shaw and Corus will then purchase the assets that interest them. Corus will acquire 14 radio stations, specialty-TV stations including YTV, Treehouse and Country Music Television, and an interest in the Comedy Network. For this, Corus has agreed to pay $325 million Canadian (US$212). Shaw will acquire WIC's distribution business, including its interest in Canadian Satellite Communications. CanWest will walk away with Montreal's local TV station CFCF, as well as stations in Edmonton and Calgary. However, CanWest may be forced to give up one of its Montreal TV stations in order for the deal to pass muster with the CRTC.