Source : Globe & Mail

French-language television network TQS, which is under court protection from its creditors, told a Quebec judge yesterday that none of the prospective buyers who kicked the tires have made an offer.

Nine companies have signed confidentiality agreements to view the broadcaster's books, and two of those firms have sent letters of interest that could lay the groundwork for an offer, but no bids have been received, the company said.

A court-appointed monitor for TQS told the court that a third letter of interest could be received by the end of this week, however several prospective suitors have already indicated they are not interested in buying the struggling Quebec network.

The latest is Rogers Communications Inc., which has been the subject of speculation in Quebec about a potential bid. Though the Toronto-based cable giant has been expanding its TV operations with the recent purchase of CITY-TV, sources close to the company say a bid for TQS is not forthcoming.

Rogers is the third deep-pocketed broadcaster to indicate in the past week it's not contemplating a bid for TQS. Montreal-based Astral Communications Inc. and Toronto-based Corus Entertainment Inc. both said they weren't considering offers.

A Rogers spokeswoman declined to comment.

Despite the financial woes at TQS, which has been trailing in the ratings in Quebec, a spokesman for the network said the company is not considering shutting down.

Industry watchers in Quebec have suggested that if the network stopped broadcasting it would boost advertising markets for other TV companies, since TQS is thought to have been slashing its rates on commercial spots to drum up more business.

"We don't have any bids on the table at this point. The furthest we are is the letters of interest," TQS spokesman Gilles Corriveau said in an interview.

"But the company is going well. Nobody is folding," he added.

Quebec Superior Court Justice Pierre Journet extended the creditor protection for TQS until the end of February. The judge also called a hearing for an update on the process to be held Feb. 21 in Montreal.

Cable operator Cogeco Cable Inc. owns 60 per cent of TQS, while broadcaster CTVglobemedia Inc., which also owns The Globe and Mail, holds the 40-per-cent minority stake.

TQS has struggled as a smaller player in a competitive French-language TV market, that also includes Quebecor Inc.'s TVA, the CBC's French-language network and several cable specialty channels owned by Astral and others.

The network commands roughly 12 per cent of the French-language TV audience in Quebec and has stations in Montreal, Quebec City, Saguenay, Sherbrooke, Trois-Rivières, along with affiliates in four other cities.

Cogeco Cable Inc. (CCA)

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