A bidding war for Osprey Media Income Fund broke out Wednesday as the fund said Black Press Ltd. has topped a takeover offer from Quebecor Media Inc.

Osprey said Victoria-based Black Press — the largest private newspaper publisher in Canada with 150 titles and revenue of $500 million — has offered $8.25 per unit in cash.

Osprey Media Income Fund three-month trading

That beats a $7.25-per-unit bid that Quebecor made on June 1 for Osprey, which owns 20 daily newspapers in Ontario, 34 non-daily papers, magazines and other publications.

Osprey units jumped more than 14 per cent, climbing $1.03 to $8.25 on the TSX. Shares of Quebecor rose 49 cents to end at $39.98.

Osprey's board of trustees has thrown its support behind the Black Press bid and given Montreal-based Quebecor until the end of July 5 to sweeten its offer.

If it stays with the Black Press bid, Osprey will have to pay a $15-million termination fee to Quebecor.

In a release, Osprey Media said Quebecor Media was complaining that the Black Press offer breaches "standstill" obligations under the Quebecor takeover agreement that restrict share sales during a takeover. Quebecor Media may sue, Osprey said.

But Osprey said it "believes that it is in full compliance with its obligations under the QMI acquisition agreement."

The Black family — no relation to former media mogul Conrad Black — owns 80.6 per cent of Black Press, while Torstar Corp. owns the remaining 19.4 per cent.

Black Press operates in Western provinces, Washington, Oregon, Ohio and Hawaii.

Osprey owns some of the oldest newspapers in the country. The Kingston Whig-Standard, for instance, can trace its roots back to 1834.