Maclean Hunter agrees to takeover - Maclean Hunter Ltd

Folio: The Magazine for Magazine Management, April 1, 1994

The board of Canadian media giant Maclean Hunter Ltd. has approved a $2.5 billion (U.S.) takeover bid by Rogers Communications Inc., Canada's largest provider of cable television services. Spokesmen say the aim is to create a Canadian version of Time Warner, with vast holdings in magazines, newspapers, cable television and other entertainment properties.

Rogers currently operates 14 cable systems with 1.85 million subscribers, 15 radio stations and one television station. It also holds interests in two telecommunications companies. For its part, Maclean Hunter is one of Canada's most venerable publishers, with holdings that include the newsweekly Maclean's, the women's fashion title Chatelaine, and cable operations in Canada and the United States. It also controls the Toronto Sun Publishing Corp., publisher of the Financial Post and daily tabloids in Ottawa, Toronto, Calgary and Edmonton. In addition, Maclean Hunter produces a number of trade magazines based in the United States, including Dog World, American Printer and Progressive Grocer. Insiders at the two companies say that if the deal becomes final, Rogers will bolster Maclean Hunter's lucrative cable and telecommunications franchises but could possibly sell off the low-margin publishing and printing properties. The deal remains subject to stockholder ratification and approval of Canadian regulators and, with regard to the sale of Maclean Hunter's U.S. cable properties, the Federal Communications Commission.