CCAU opposes the application because approval by the Commission would give GSCP and its affiliates, which are non-Canadians, overwhelming control in fact of both Alliance Atlantis and the existing television business of CanWest
http://www.wgc.ca/files/CCAU%20Intervention%20-%20CRTC%20-%20CanWest%20AA%202007-08-10.pdf
Re: Application No. 2007-0700-5 (the "Application") by CanWest Media Works Inc. ("CanWest"), on behalf of Alliance Atlantis Communications Inc. (Alliance Atlantis), seeking authority for the transfer of effective control of Alliance Atlantis’ broadcasting companies to CanWest – Broadcasting Notice of Public Hearing CRTC 2007-11,
8. The structure proposed by CanWest and GSCP is relatively complex, and many details of such structure are not provided to interested parties because of extensive claims for confidentiality made by CanWest and GSCP that have been upheld by the Commission.
17. While the Commission had granted CanWest and GSCP confidentiality for the details of the formula to be used in respect of the calculation of CanWest's ultimate equity interest, CanWest's news release of July 31, 2007 revealed possible outcomes of the contribution.
16. A very important feature of the proposed structure is that CanWest and GSCP have agreed that CanWest and its affiliates will contribute CanWest's existing television broadcasting business (the "Contributed Business") to Amalco in 2011 in exchange for an increased equity interest of CanWest in Jointco. The extent to which CanWest's equity interest will increase is dependent upon the combined cash flow of the Contributed Business
12. Approval would also result in CanWest owning 66 2/3% of the voting shares of Jointco. GSCP would own 33 1/3% of the voting shares of Jointco. However, GSCP’s economic interest in the Alliance Atlantis licensees would be substantially greater. In the application as originally filed, CanWest would provide only $200 million of the $702 million investment in equity to be provided by CanWest and GSCP. As a result, CanWest would have had an equity interest of only 29% in Jointco while GSCP would have had an equity interest of 71%.
13. In its July 31, 2007 news release, CanWest announced that its equity investment in Jointco would increase to $262 million, thus resulting in CanWest having an equity interest of 36% in Jointco and GSCP having an equity interest of 64%.
