1. CanWest Global Communications Corp., Canada's biggest media company, is selling CanWest MediaWorks (NZ) Ltd, owner of New Zealand's most popular radio network, to raise money to revive its Canadian television stations, whose profit plunged 75 percent last year.
2. CanWest is also trying to sell its 56.4 percent stake in Ten Network Holdings Ltd., Australia's third most-watched television station.
3. For CanWest, this transaction allows it to further our objective of reducing debt and redeploying capital.
4. MediaWorks may pay a special dividend of 11 cents a share to distribute tax credits. The offer price will be adjusted accordingly if the dividend is paid.
Reducing debt is a good way to reduce expenses when return on equity is less than cost of debt.
[Click here for full story at: BLOOMBERG.COM]
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