By: E&P Staff Quebecor heads to court Wednesday to block the takeover of community newspaper publisher Osprey Media Income Fund by rival bidder Black Press Ltd.
As reported
last week,
Victoria, British Columbia-based Black Press bested Quebecor's bid for Osprey by C$1 per unit in a deal that values the chain of 20 Ontario dailies and 34 weeklies at about US$377 million. In May, Quebecor bid US$355.5 million for Osprey in a deal that had been expected to close this month.
Osprey said last week that Quebecor has until July 5 to match or beat Black Press' offer. Osprey said it would "vigorously oppose" the lawsuit, The Toronto Star reported in an article by business reporter Rita Trichur. Black Press called the lawsuit a "frivolous tactic." Black Press is principally owned by CEO David Black and family, with Torstar, publisher of the Star, holding a 19% stake.
In a statement reacting to the Black Press bid, Quebecor said the offer may violate a "standstill" clause in its acquisition agreement with Osprey.
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