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Tuesday, February 22, 2011

Astral's attempt to block Cogeco's radio deal is denied

cogeco A Federal Appeals court in Canada has ruled against Astral Media's bid to block the already-closed Corus Radio sale in Quebec. The sale allowed Corus Radio to sell 11 stations to Cogeco. Astral's appeal was based upon Cogeco now owning three radio stations in the Montreal market, which was a violation of CRTC rules. Radio-Info previously reported that the CRTC approved the sale after Cogeco promised to include making local news coverage a condition of the sale. Cogeco now owns 16 radio stations in Quebec, including three in Montreal. Cogeco closed on the $80 million - 11 station sale on February 1. The Canadian Press quotes Astral spokesman Hughes Mosseau, saying "It's important that the rules be clear and that they not change. If they evolve, that's fine, but it must be done in a context that is fair for everyone — not in the framework of a study on one transaction, as was the case here."

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