Postmedia to lobby Ottawa for more foreign investment

The Globe and Mail's Susan Krashinsky reports that Postmedia is lobbying Ottawa to allow more foreign investment in the newspaper industry, a move that would have significant implications for the sector if it were successful. The Globe story says that lobbyist David Angus of the Ottawa firm Capital Hill Group Inc. filed a new registration last month listing Postmedia Network Canada Corp. as a client. The document says Mr. Angus will work on behalf of Postmedia in “seeking to allow foreign investment in Canadian newspapers,” according to the public registry of lobbyists. Postmedia, which publishes the National Post as well as urban daily newspapers, including the Calgary Herald and the Ottawa Citizen, is in the position of needing to find a committed owner in a difficult environment for print media. The company’s current investors, led by New York-based Golden Tree Asset Management LP and other funds, are expected to want to sell their stakes in the company within the next few years. Some, such as RBC Dominion Securities Inc. analyst Drew McReynolds, have speculated that Torstar Corp. could be a potential buyer. But others are not confident a Canadian buyer will emerge offering the right price.