Montreal: After reviewing the current facts related to a Cogeco-Bell Globemedia offer to buy 85% of the shares of Television Quatre Saisons, the Competition Bureau has decided not to pursue the issue further.

The federal regulator issued a decision May 2 based on a claim by seller Quebecor that the Cogeco-BG bid is anti-competitive. The decision also rejected a Quebecor claim that the new joint bid is considerably lower than an earlier stand-alone bid by BCE, thought to be in the $80-million to $100-million range.

Cogeco holds 15% of TQS and has sought a conventional broadcast licence in the Montreal market for many years, without success.

Luc Lavoie, executive VP, corporate affairs for Quebecor, says the sale of TQS is now in arbitration, and a lead arbitrator will be named shortly. ‘By its very nature [the arbitration process] may produce a lot more facts which may again trigger the Competition Bureau.’ The regulator earlier decided Quebecor must sell TQS by Dec. 31, 2001.

The TQS shareholder agreement between Quebecor and Cogeco stipulates Cogeco has a right of first refusal. The agreement also contains a clause that says Cogeco cannot abuse its right. The disagreement between the signatories has now triggered the arbitration process.

All parties involved in the sale of TQS are bound by a confidentiality agreement. A decision on Quebecor’s application to the CRTC for control of Groupe Videotron and Groupe TVA, meanwhile, may be announced by mid-June. *