While the asset shifts of Shaw Communications, wic, Netstar and CanWest are in the news, sources say the vultures are circling the CTV Network.

Since no bids for control are on the table, ctv is not technically in play. But analysts say that the share structure of the network’s ownership, combined with the current acquisition and consolidation-hungry environment, make for an attractive target.

‘It’s a property unlike any other broadcaster,’ says one analyst speaking on the condition of anonymity. ‘There’s only one class of share, which means somebody would have a relatively easy time launching a take-over bid and succeeding. So could it be put into play in a meaningful way? At the drop of a hat.’

Amongst the entertainment companies thought to be casing the property are Astral Communications and Shaw Communications, the latter of which employs former ctv president John Cassaday as president of Shaw Media. The new Alliance Atlantis Communications is also thought interested, although ceo Michael MacMillan says otherwise.

‘We are focused – and have been focused for some time – on this [merger] transaction, which hasn’t been simple. After shareholder approval is granted, my one priority is to carry out the successful and rapid integration of these companies. No, we are not planning on buying Baton. We’re planning on merging these two companies effectively to compete and grow.’

Similarly, Cassaday says there is no truth to the speculation. ‘We’re entirely focused on trying to get the wic deal done, so no. We’re not looking at ctv.’ Ditto Astral spokesperson David Novek who says ‘there’s nothing to that.’

Owning a network

Nevertheless, analysts say a move on the network wouldn’t be a surprise. ‘With the wic situation and CanWest locked up, it’s the last network in Canada you’re ever going to be able to own.’

ctv’s shares – all widely held with Electrohome holding the largest block at 17% – are all class A voting, without the complicated A/B voting/non-voting structures that characterize the other broadcasters.

In part, this means that the kinds of familial allegiances that make shareholders hold onto stock for reasons other than money (e.g.. wic), don’t exist with ctv. With this kind of set-up, analysts say any deal would be mostly about money. A lot of money.

ctv is valued at about $1.3 billion, including its $250 million debt load. Should wic’s assets be broken up and sold via the deal with Shaw, ctv could be interested in purchasing wic’s properties in Vancouver (bctv) and CF-12 with an estimated combined purchase price of about $450 million, and pushing ctv’s value to more than $1.6 billion.

And although Alliance Atlantis says its not interested in the broadcaster, analysts say that it – like any other interested production company – could find synergies with its existing business and the network and may be better positioned to spend.

‘Strategic buyers who are able to combine their current business with the new business are always ready to pay more than strictly financial investors,’ says another analyst requesting anonymity. ‘They would have guaranteed access to some broadcast slots; from the broadcast perspective, they’d have a guaranteed source of programming.’

The size of the newly merged company may put it ahead of the pack of any other interested production companies, he adds.

‘Any production company would probably lose Telefilm funding with a move like this, but that may or may not be a deal-breaker in the case of Alliance Atlantis, particularly considering they’re going to be producing for the international market.’

But others point out that the potential for substantive self-dealing may make any merged production company and national broadcaster deal difficult to get through the commission.