Friday, April 30, 2010

Torstar bid for CanWest papers in doubt

Torstar push to become the biggest newspaper publisher in Canada is in danger. With bidding set to close Friday night in the auction of chain of 46 newspapers, the parent company of the Toronto Star is on the brink of losing its key financial backer. Fairfax Financial the deep-pocketed insurance company that teamed up with Torstar to make an offer on the newspapers, has told bankers it has decided against bankrolling the purchase, according to sources close to the matter. The chain of papers includes 11 large dailies such as the National Post, Vancouver Sun and Ottawa Citizen, along with 35 community papers. At the heart of the matter is the financing Fairfax hopes to arrange. The newspapers are being sold off by CanWest’s creditors, which include Canada’s largest banks, who are trying to recoup $950-million they are owed by CanWest.

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