Cerberus’ Eyes Canadian Communications Properties
May 24, 2007

Less than a week after its purchase of Chrysler was revealed, private equity firm Cerberus Capital Management apparently has eyes across the border on the communications industry.

Cerberus has joined the race to buy BCE, Canada’s biggest telecommunications operator, the Financial Times reports from Toronto. In addition to landline and wireless telephone operations, BCE owns Canada’s biggest satellite TV company and has a minority stake in Bell Globemedia, which controls CTV, the country’s biggest private sector TV network, and The Globe and Mail newspaper.

BCE is under pressure to consider a buyout due to lackluster performance of late. At least two other buyers have expressed interest. And ultimately no buyer may be selected, said BCE. Under Canadian ownership rules, foreign shareholders are restricted to a 47 percent stake in telecom operators.

The Financial Times further reports that in addition Cerberus was courting two Western Canadian media groups, CanWest Global Communications and Shaw Communications, partners in CanWest, with a number of holdings in television networks, cable operators and newspapers.

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