Toronto-based Alliance Atlantis Communications Inc. (AAC-B), who is 50 percent owner in the CSI franchise, announced that it has put itself up for sale. The strategy would involve CanWest Global Communications Corp. (CGS), and possibly bring as much as $2.2 billion. Potential buyers may include Corus Entertainment Inc. (CJR-B) and Astral Media Inc. (ACM-A).
Southhill Strategy Inc., the controlling shareholder, has reportedly put together a committee to explore the various alternatives.
Desjardins Securities analyst Carl Bayard concluded that the sale should start at $55 a share, a go from there; which would equal the potential $2.2 billion suggested.
"We have long stated that Alliance Atlantis could end up on the selling block and, given the attractiveness of its specialty broadcasting assets, there are a number of players for whom an AAC purchase would make strategic and financial sense," Bayard said.
Some of the TV channels that Alliance owns are Discovery, HGTV, History Television, the Food Network, BBC Canada, the Life Network and Showcase.
(CPimages/Frank Gunn)
Alliance does not own Discovery, HGTV, Food Network or the others. It only makes and licenses programs to them.
Posted by: ABB | December 27, 2006 5:49 PM | Permalink to Comment