Shaw deal clears court hurdle
A last minute deal assuages shareholders, clearing the way for a final vote.
The Ontario Superior Court of Justice has cleared away another hurdle in the $2 billion deal that will see Shaw Communications acquire Canwest Global Communications’ broadcasting assets.
The offer was complicated this week when former CEO Leonard Asper and a group of Canwest shareholders filed last-ditch documents in a bid to appeal the Shaw deal and start another auction process. The group complained that the deal undervalued the assets and that it didn’t contain the 2.3% equity interest given to them in February.
An out-of-court settlement yesterday saw that $11 million equity interest paid, clearing the decks for a July 19 confirmation vote by affected Canwest creditors. Should that vote result in a positive majority, a further motion will be brought before the Court on July 28 for a final approval of the deal.
The deal is still subject to approvals from the CRTC and the Competition Bureau.