THURSDAY MAY 11, 2006

YELLOW PAGES BUYS CLASSIFIED MAGS
Yellow Pages Income fund will pay $760 million in cash to purchase publisher Classified Media (Canada) Holdings Inc. and assemble a second national advertising network to go along with its telephone directory business. The purchase of 137 classified publications, all outside of Ontario, includes Auto Trader, Auto Hebdo, the Bargain Finder, and Home Renters’ Guide, plus nine websites. In December 2005, Yellow Pages announced a $436-million deal to purchase Trader Media Corp., Ontario’s largest publisher of classified advertising and websites. Expected to close on June 15, this latest deal will also target $10 million in annual cost savings by combining Classified Media – known as Trader Canada – with Trader Media corp.

Marc Tellier, Yellow Pages chief executive, reportedly emphasized the attractive online growth opportunities from the combined businesses as well as good cross-selling potential with the telephone directory franchise. Chief financial officer, Christian Paupe, commented: “The right way to look at this is $1.2 billion to establish a national platform that’s very complementary to our core business of directories.” The classified publishing businesses grow revenues and earnings at about seven per cent a year compared to four or five per cent for directories. Read more: www.ypg.com

TRANSCONTINENTAL WILL PUBLISH MORE MAGAZINE
Transcontinental announced an exclusive, multi-year licensing agreement with U.S. publisher, Meredith Corporation, to become the publisher of MORE magazine’s Canadian version, to be launched in spring 2007. The magazine targets the 40+ female demographic, an underserved niche in both the Canadian marketplace and Transcontinental’s suite of women’s magazines, according to Francine Tremblay, senior vice-president of consumer publications, Transcontinental Media. The Canadian ramp-up will begin in July with Dianne Rinehart as its editor-in-chief. Luc Desjardins, president and CEO, noted: “Meredith’s reputation as the American consumer magazine specialist for over a century now and MORE’s popularity combine to make this a promising partnership that may foster further opportunities for both our publishing and printing activities.” Read more: www.transcontinental.com

CANADIAN TIRE CEO APPOINTMENT
The Board of Directors of Canadian Tire Corporation, Limited, recently announced the appointment of Tom Gauld as President and CEO, and a Director of the Corporation, replacing Wayne Sales. Mr. Sales has stepped down from the Board and his position as President and CEO, but has agreed to remain available to the organization for the term of his employment contract to facilitate a smooth transition for Mr. Gauld. He has been appointed Vice-Chairman in an advisory capacity to Mr. Gauld and the company. Tom Gauld is the past President of Canadian Tire Financial Services. Read more: www.canadiantire.com

PRIVACY REPORT
In a recently released report, the Canadian Internet Policy and Public Interest clinic (CIPPIC) provided the results of the first Canadian survey assessing the compliance of retailers with data protection laws. The results show widespread non-compliance with federal laws requiring openness, accountability, consent, and individual access to personal data. CIPPIC Executive Director, Philippa Lawson is co-author of the report: Compliance with Canadian Data Protection Laws: Are Retailers Measuring Up? She noted that “A surprising number of companies in our sample failed to comply with some basic legal requirements respecting consumer privacy. Far too many companies are unclear about how they use customer data, whether they disclose it to third parties, and how the customer can stop unnecessary uses and disclosure.” The study, funded by the Office of the Privacy Commissioner of Canada, assessed the compliance of 64 online retailers with specific legal requirements for accountability, openness and consent. It also separately assessed the compliance of 72 online and offline retailers with the requirement to provide individuals with access to their personal information, upon request.

Lawson added: “The results of our study suggest that current data protection laws do not provide sufficient incentive for companies to comply. Far too many companies are still failing to meet basic legal obligations under the ACT, five years after it was introduced. It’s time to consider beefing up the enforcement regime.” In a companion report entitled “On the Data trail: How Detailed Information About You Gets Into the Hands of Organizations With Whom You Have No Relationship”, CIPPIC reports on many ways in which consumer data is gathered and used in the marketplace. Read more: www.cippic.ca Questions, issues, concerns: executive@nammu.org

The federal Personal Information Protection and Electronic Documents Act known as PIPEDA, is scheduled for Parliamentary review this year. CIPPIC’s study was designed to inform that review.

CANADA POST RELEASES ANNUAL REPORT
In its 2005 annual report tabled last week in Parliament, Canada Post Corporation reported its eleventh consecutive year of profit for its group of companies. The Corporation recorded a consolidated net income of $199 million for the fiscal period ended December 31, 2005. The return on equity for 2005 reached 15 per cent, the second year of achieving one of the key objectives of the multi-year Policy Framework approved by the shareholder, the Government of Canada, in 1998. As a result, the Corporation will make an annual dividend payment at the rate of 40 per cent of net income, an estimated $80 million in 2006. The total dividends paid over the last five fiscal periods amount to $177 million.

Consolidated net income increased $52 million over 2004, cost of operations increased $268 million. On a consolidated basis, Canada Post Corporation processed 11.1 billion pieces in 2005 and met the corporate on-time service performance target of 96 per cent for the delivery of Lettermail.

To read the detailed annual report: click here
Interested parties are asked to supply questions, comments to: executive@nammu.org