Monday, March 8, 2010

As a result, von Finckenstein told executives from CanWest and the Wall Street investment bank to "take another look at" the arrangement.

CRTC Chairman Konrad von Finckenstein must resign & the total purchase price is no less then 2.5 billion, not 2.3
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http://www.canada.com/montrealgazette/news/story.html?id=fa41ef42-b23f-455f-bd42-74251f245248

Quute, "Konrad von Finckenstein, the CRTC chairman, said Monday that Goldman Sachs Group Inc. has "very restrictive" vetoes under its agreement to help finance CanWest Global Communications Corp.'s $2.3-billion purchase of Alliance Atlantis Communications Corp. [Vetos not disclosed in GAAP filings.] ex. summary, http://www.canwest.com/media/viewNews.asp?NewsroomID=876

Quote, "Von Finckenstein asked painstaking, technical questions over specific clauses in the CanWest-Goldman Sachs agreement, most notably veto power Goldman Sachs possesses as part of its deal to put up the bulk of the financing but only a minority of voting equity."

Quote, "Prior to von Finckenstein's questions, a senior Goldman Sachs official tried to reassure the CRTC that it had no interest in managing the broadcast entity. "This transaction has been designed so that CanWest is in control," Gerry Cardinale, managing director of GS Capital Partners, Goldman Sachs' private equity arm, told a panel of CRTC commissioners. "CanWest has the skill and resources to manage this business. We understood the regulatory need for Canadian control, and we fully accepted that when we entered into our agreement with CanWest."

Secondary source needed to file wikipedia article
Quote, "In 2011, as part of the arrangement with Goldman Sachs, CanWest will fold its existing Canadian TV networks, Global and E!, into the new company created to house the Alliance Atlantis specialty channels. The ownership stakes at that time will be determined by a formula based on the earnings of all the broadcasting properties. "

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