Alliance Atlantis shareholders approve CanWest deal
Last Updated: Thursday, April 5, 2007 | 4:19 PM ET
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Shareholders of Alliance Atlantis Communications Inc. on Thursday approved the company's sale to CanWest Global Communications Corp.
CanWest Global and its partner, New York investment bank Goldman Sachs, offered $2.3 billion for Alliance Atlantis in January.
Alliance Atlantis said following a special shareholders meeting that more than 99 per cent of the votes cast were in support of the CanWest offer.
The completion of the deal requires approval by Ontario Superior Court.
Alliance and CanWest have said they are confident they can complete their takeover deal despite objections raised by Movie Distribution Holding Trust.
The trust said Wednesday evening that it planned to appear in court Thursday to ask that the deal should not be completed without its consent.
The court fight centres around Motion Picture Distribution Limited Partnership. Alliance Atlantis indirectly holds 51 per cent of the partnership, while the trust's parent, Movie Distribution Income Fund, owns the remainder.
The trustees of the fund are asking for veto power because they argue they have not been given enough information about how the deal for Alliance Atlantis will affect their business.
David Lazzarato, the executive vice-president and chief financial officer of Alliance Atlantis, said his company does not believe the consent of the trustees of the fund is necessary.
Lazzarato said the parties continue to hold discussions, adding that he believes they should be able to reach a resolution of the fund's concerns.
"We are hopeful that the parties will reach a satisfactory understanding but, of course, we cannot currently predict the outcome," he said in a release.
"In the meantime, we will take whatever legal steps we think are appropriate to protect our rights and the interests of our shareholders."
Units of Movie Distribution Income Fund rose 18 cents at $8.80, while Alliance Atlantis slipped eight cents to $50.89. CanWest Global shares gave up a nickel to finish at $11.40 on the TSX.
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