TORONTO – The fairness hearing in connection with CanWest Global Communications’ purchase of Alliance Atlantis Communications’ has been re-scheduled to June 15 at the request of the specialty TV broadcaster. The hearing was initially set for May 18, 2007.
The Movie Distribution Holding Trust, a minority shareholder in Alliance Atlantis’ Movie Picture Distribution LP (MPD), contends that its consent is needed in connection with the CanWest Global purchase. Alliance Atlantis, which indirectly owns 51% of MPD, doesn’t believe the arrangement requires the consent of the Holding Trust, although it says certain re-organizational steps anticipated in the deal may require the consent of third parties.
The matter of whether or not consent is required will be considered at the fairness hearing.
Discussions continue among all the parties, David Lazzarato, Executive VP and Chief Financial Officer of Alliance Atlantis, said in a statement.
“Delaying the court date permits the discussions to continue. As we expect the arrangement to be completed in July or early August, we continue to believe there is ample time for this process to run its course and we are hopeful that the parties will reach a satisfactory understanding but, of course, we cannot currently predict its outcome,” he said.
Alliance Atlantis’ interest in its motion picture distribution business in MPD would be controlled by a Canadian partner of Goldman Sachs under terms of the sale between CanWest and Alliance Atlantis.
In a separate media release, Rubin Osten, Chair of the Special Committee of the Board of the Holding Trust and the Fund, stated: “We have held discussions with Goldman Sachs and, together with MPD and Alliance Atlantis management, have provided Goldman Sachs with information with which they might formulate proposals to address our concerns.”
