Thursday, 5 July 2007

Judgment Day

It is judgment day for Quebecor's legal bid to block a Black Press offer for Osprey's 54 newspapers across Ontario.

A Sun Media story in the Edmonton Sun today says:

"A Superior Court judge will rule today on Quebecor Media Inc.'s quest to block a competing bid for Osprey Media Income Fund - 90 minutes before the (4 p.m.) deadline to match the Black Press Ltd. offer.

"Lawyers for Quebecor and Osprey were in court yesterday arguing over the validity of the Black Press offer.

"Quebecor lawyer Alan Mark told Justice Colin Campbell that he should block a rival bid by Black Press to buy newspaper company Osprey for $405 million or $8.25 a unit (Quebecor offered $356 million or $7.25 a unit on May 31.)

"Mark argued that Victoria-based Black Press improperly negotiated with its partner Torstar Corp. to divide up Osprey's assets. Torstar owns 19% of Black Press.

"Osprey's lawyer Kent E. Thompson said Black Press's offer was unsolicited and it didn't break the "no shop" rule of the standstill agreement. Thompson called Quebecor's application a "meritless" attempt to interfere with a superior offer for Osprey."

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