Merrill Lynch is advising investors to accumulate stock in CanWest Global, which holds a 45 per cent share in TV3 and also manages the station. CanWest also holds 29.9 per cent of UTV. Last week CanWest announced it was acquiring most of Hollinger's English Canadian publishing assets for $3.5 billion (€3.89 billion). Merrill points out that it is a very big acquisition for CanWest and should approximately double its revenues and EBITA.
However, the brokers say they think the acquisition price is attractive, "given that it is at the low end of acquisition multiples".
The brokers add that the deal has put cross-ownership of broadcast and newspapers back on the front page, a trend that it says will continue.
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