Postmedia, Toronto Star owner in merger talks
‘The two media giants have entered into non-binding discussions on options for combining operational assets, according to company officials’
Two of Canada’s largest media companies — Postmedia, owner of National Post, Toronto Sun and a large fleet of major Canadian newspapers, and Nordstar, owner of the Toronto Star and other city and weekly newspapers — are in talks for a potential merger.
The two media giants have entered into non-binding discussions on options for combining operational assets, according to company officials.
The information was released in response to unusual trading activity, said Phyllise Gelfand, vice president of communications for Postmedia, in a written statement released late Tuesday afternoon.
The merged company, which would be jointly owned and jointly controlled by Nordstar and existing Postmedia shareholders, has not yet been named. Each side of the transaction would have a 50 per cent voting interest. Postmedia would have a 56 per cent economic interest in the new corporate entity and Nordstar the remaining 44 per cent economic interest.
The two companies’ top executives would remain in positions of authority in the new merged company: Jordan Bitove, publisher of the Toronto Star and owner of Nordstar, would be chairman and Andrew MacLeod, chief executive officer of Postmedia, would be CEO.
