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A newspaper, magazine and confection retailer has submitted a counter-proposal to run Toronto’s subway newsstands for $4.5-million more than the sole-sourced agreement accepted by the transit commission.

Dakin News Systems Inc., which operates International News outlets, says it is prepared to pay $46.2-million for control of the 65 newsstands and newspaper distribution.

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Company president Sam Davis outlined his proposal in a letter, obtained by the National Post, dated Jan. 29 to Mayor Rob Ford, TTC Chair Karen Stintz and other transit officials.

The TTC and Ms. Stintz have come under fire from the mayor and other councillors for agreeing to extend Tobmar Investments’ lease without seeking competitive bids.

“In our opinion this would not be in the best interest of the TTC, its ridership, the citizens of Toronto and the taxpayers of Ontario,” Mr. Davis wrote in his letter, saying he only knew about the contract after it was first awarded last fall.