RE:PostmediaHi Forkliftguy,
There will be two papers in Toronto when the rationalization is completed - The Toronto Star and The Globe and Mail. The National Post has always been a financial failure since the day Conrad Black hatched the idea. I would be very surprised if The Toronto Sun makes money and it will be supplanted by Metro. Toronto cannot support four paid daily newspapers and only financial folly and ego has allowed this to continue
Fairfax will pay a significant premium because of the value of the underlying assets which the current market doesn't recognize. In order to wrestle Torstar out of the hands of the decrepit Voting Trust, they will have to pay a reasonable amount to privatize Torstar.
Focusing on the current share price is a mug's game. Break down the value of each of the assets in Torstar's asset base and you will find that $6 or more is not unreasonable, especially when you already own a significant number of share.