Making at least a temporary peace with its former chairman Victor Loewy, Alliance Atlantis Communication Inc.'s (AAC.A) movie-distribution unit will probably be put on the market for sale.
In a messy feud where Loewy left his job in response to two of his workers being fired for alleged irresponsibility on the job and allowing private company information out in order to sell the company secretly. As a result of the new deal between Loewy and Alliance, the lawsuit against the two is being dropped.
As part of the deal, Loewy will be retained as a consultant with compensation in line with his former chairman job. He will also retain authority over New Line products, until the end of the contract in 2008.
There were concerns by analysts that New Line would leave its contract with Motion Picture because of its ties to Loewy. One analyst said, "[Alliance Atlantis and Loewy] don't get along and they both like 
money, so this way they can make sure the New Line contract is still there ... and they can announce that they're going to dispose of the company, they both get more money and they don't have to work together."
Victor Loewy
There has been some interest in the company as Marwyn Investment Management LLP, a London-based hedge fund, said it had made a bid for the company in August of $400 million, based upon the return of Loewy to the fold.The company, which is 51% owned by Alliance Atlantis, also said its distribution agreement with New Line Cinema would continue until at least the end of 2008. Industry observers feared New Line would pull out of its contract with Motion Picture this month because of the studio's close ties to Mr. Loewy. Goldman Sachs of New York is also thought to be interested in the company, but as of yet no official offer for the company has been made.
» Alliance Atlantis About to be Under New Management from BizofShowBiz
The Alliance Atlantis Communications (AAC-B) saga may be finally coming to an end as Goldman Sachs Group Inc. (GS), in a joint takeover of the company with CanWest Global Communications Inc. ( CGS)for $2.3 billion, begins running operations this week.... [Read More]
Tracked on: January 14, 2007 9:49 PM | Permalink to Trackback