Source : Globe & Mail

MONTREAL -- Astral Media Inc.'s second attempt to sell seven Quebec radio stations and one repeater station has fallen apart after the would-be buyer walked away from the $12-million deal.

There was speculation in media circles yesterday that the scuttling of the deal was largely because of the recent departures of two top on-air personalities from Montreal's CKAC, the key radio station in the package being sold.

Host Jean Lapierre, founding member of the separatist Bloc Québécois, announced recently he is leaving broadcasting to run for the federal Liberal Party.

Also leaving CKAC is Paul Arcand, a popular morning man who was lured away to a new Montreal FM station launched last month by Corus Entertainment Inc.

The prospective buyer was a private group formed by Gaétan Morin, president of holding company Groupe Morin Ltée, and Sylvain Chamberland, CKAC's president and general manager.

Montreal-based Astral said in a news release it will move quickly to find a new buyer for the six AM stations and one FM outlet.

Both Astral and Groupe Morin refused to comment yesterday.

Local print media speculation had it that Mr. Morin and Mr. Chamberland tried unsuccessfully to negotiate a lower price than the $12-million that had been originally agreed to.

Last year, the CRTC rejected an initial attempt by Astral to sell the stations to Quebecor Inc.-controlled TVA Group Inc., on grounds that the deal would give Quebecor too much clout in the province's media market.

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