Fairfax, Torstar return to CanWest hunt

Fairfax Financial Holdings Ltd., which pulled out of the auction Thursday when talks with its banks broke down, returned to the table Friday to submit a bid in conjunction with Torstar Corp., owner of the Toronto Star newspaper. Buyout specialist Birch Hill Equity Partners Management Inc. is also believed to be on the final list of bidders. Sources indicate the company is looking to acquire the CanWest newspapers and sell them off in a future initial public offering, once the economy improves. The deadline for bids in the auction of CanWest Global Communications Corp.’s 46 newspapers closed Friday night, and sources indicate the field of suitors has been reduced to as few as three finalists.