Canadians buy stake in UTV

The Canadian shareholder in the TV3 consortium, CanWest Global Communications, has taken a 7.4 per cent stake in Ulster Television (UTV) and says it wants to increase its stake further. The move makes the company one of the most significant commercial television investors in Ireland.

The Canadian company is not planning a full takeover of UTV and cites legislation preventing non-EU companies taking over broadcasting stations as one of the main reasons.

However, according to a company spokesman, there are "future possibilities being considered" by the company as to how UTV and TV3 might might enter some commercial arrangements.

This might include sharing the same transmission facilities, said the spokesman.

The possibility of an all-Ireland service was not ruled out last night.

A week ago CanWest paid £3.5 million for a 2.7 per cent share in UTV. Yesterday it added to that, and now holds 7.4 per cent.

At the time of the first purchase, it was not known who was taking the stake.

"We have acquired a position in UTV as a strategic investment," said a company statement from CanWest last night.

"In light of our investment in TV3, we feel than an investment in UTV is a natural extension of our Irish strategy," said Mr Leonard Asper, CanWest's vice-president, corporate development.

"Any future share acquisitions will, of course, be consistent with British foreign ownership legislation," he added.

The irony of CanWest taking a stake in UTV is that UTV was replaced by CanWest as a shareholder in TV3 in April of this year. UTV was originally a major investor in TV3, but pulled out in September, 1996, following disagreements with the other shareholders and with the IRTC.

"We are here for the long haul in Ireland and we are not worried about having a stake in two competing stations," said the spokesman.

CanWest Global Communications, based in Winnipeg, is Canada's most profitable broadcaster.

It owns and operates the country's largest private-sector broadcasting network, while in New Zealand and Australia it owns majority stakes in two independent television stations.

In 1996, CanWest reported record financial results, with revenue for 1996 the equivalent of £290 million and net profits at £47.2 million.

The purchase of shares by CanWest is just the latest in several "dawn raids" on UTV shares.

In August Scottish Media Group spent £14.1 million sterling to build up a 15 per cent stake in the firm and has subsequently increased its stake to 18.2 per cent.

That company has also stated that it has no intention of making a full takeover bid for UTV, but some industry sources believe that it would attempt to increase its shareholding further.