TORONTO – It would seem Bell Canada and Astral Media are figuring out how they can get back to the altar and tie the knot after all, perhaps with a third party in tow.
The Globe and Mail broke a story this morning saying a new purchase arrangement between the two would be announced soon, but this one would likely involve the spinoff of some English language TV assets – something we said could happen here.
In fact, since Bell and Astral executives are obviously committed to this deal and to do what it takes to have it approved by the CRTC, it would likely be much better off presented to the Commission fully-formed (as we suggested here). That is, with the third party (or parties, one supposes) who is taking whatever assets Bell has decided to part with, signed, sealed and delivered. As readers are well aware, the CRTC denied Bell’s purchase of Astral Media last month saying such a move would not be good for Canadians as it would concentrate too much power in one company’s hands. To have at least one other set of hands in there would seem to be prudent.
While the denial prompted quite a stream of vitriol from the company and an unprecedented filing to cabinet in its immediate wake, that filing now looks as though it will be ignored by the federal government and BCE CFO Siim Vanaselja, speaking Tuesday in Toronto at the Scotiabank Global Banking and Markets 2013 Telecom and Cable Conference, didn’t speak for long about Astral, but seemed to show a bit of a softening in Bell’s stance on the issue:
“As much as we were disappointed with the CRTC’s decision, we do understand now the concerns that were expressed by the CRTC, and we appreciate there’s a process for addressing those concerns,” said Vanaselja. “That’s what we’re in the midst of pursuing at this moment, and I think that that’s about all I can give you in terms of an update on the transaction. We’ll have to see how it plays out.”
The jewels in the crown of Astral assets for Bell would be Astral’s The Movie Network and its sub brands like Encore and HBO Canada, as well as Astral’s slate of French-language TV specialty and pay channels. Bell could address the CRTC’s market power concerns by selling off some of its own assets (like CTV Two and some of its 29 specialty channels) or select Astral assets (like its 50% stake in Teletoon, minority position in Viewer’s Choice Canada and a larger number of radio stations than the 10 Bell proposed it would sell off the first time around).
Anyhow, because of the Globe story this morning, trading in Astral’s shares were halted until noon, just after Astral released a statement saying it had nothing to report, but that something is up:
“While it is Astral's policy not to comment on market rumours or speculation, Astral today confirms that it is in discussions with Bell to continue pursuing regulatory approvals for Bell's acquisition of Astral, including, among other options, the filing of an application with the Canadian Radio-television and Telecommunications Commission (CRTC),” reads the release. “The timing and details of any such application have not yet been determined. The Company will keep its investors informed of any significant developments in this respect.
“The acquisition of Astral by Bell is subject to regulatory approval by the CRTC and the Competition Bureau. As announced on October 25, 2012, Bell has elected to postpone the Outside Date for an agreement to December 16, 2012, and each of Bell and Astral has the right to further postpone the Outside Date to January 15, 2013. There is no assurance that any transaction will occur or occur with the terms and conditions currently contemplated.”
In other words. Something is coming. Stay tuned.
