Updated from 10:10 a.m. EDT

CanWest Global Telecommunications

(CWG)

, Canada's largest broadcaster, said Monday that it will pay C$3.5 billion ($2.4 billion) in cash and stock for the English-language Canadian newspaper, magazine and Internet assets of media tycoon Conrad Black's

Hollinger International

(HLR)

, one of the top newspaper publishers in the world.

The move, which includes a 50% interest in the

National Post

newspaper, makes Hollinger the second-largest shareholder in CanWest, behind the family of founder and executive chairman Israel Asper. It is also the largest deal in Canadian media history.

Under the terms of the agreement, CanWest will pay C$2.2 billion in cash and about C$600 million in non-voting shares and multiple voting preferred shares. The 24.3 million non-voting shares are valued at C$25 each, while the 2.7 million multiple voting preferred shares are valued at a premium of C$3.75 over the price of non-voting shares.

Hollinger, based in Chicago, will acquire a 15% share and just under a 6% voting interest in CanWest. Black, the chairman of Hollinger, and another Hollinger executive will join the CanWest board.

As a result of the merger, Winnipeg-based CanWest expects cost savings of between $50 million and $150 million, with the transaction adding to earnings by the end of fiscal year 2002.

Shares of Hollinger rose 1 5/8, or 11%, to close Monday's trading at 16 1/4, while shares of CanWest rose 11/16, or 6%, to finish at 12 5/16.