Shareholder Complaint Aims To Halt, Renegotiate CHUM Sale
July 18, 2006 at 7:00 AM (PT)
One of CHUM LTD.'s minority shareholders has filed a complaint with the ONTARIO SECURITIES COMMISSION in an attempt to stop the purchase of the company by BELL GLOBEMEDIA and make the company renegotiate the deal.
JARISLOWSKY, FRASER LTD. owns 3.3 million non-voting shares of CHUM (15.5%) and its President LEN RACIOPPO told the NATIONAL POST that while he is not challenging the legality or value of the deal, "I'd like them to say that in the interest of the capital markets, we can't have premium bids for different classes of shares and therefore, the deal is not fair." The challenge looks to force the controlling WATERS family to get the same deal for Class B shareholders that Class A shareholders got from BELL GLOBEMEDIA.