Goldman Sachs appeals Shaw-CanWest deal

Goldman Sachs Group Inc. has asked an Ontario appeals court judge to overturn a ruling allowing cable operator Shaw Communications to buy the broadcast business of CanWest Global Communications.

The Wall Street investment bank is part a consortium of last-minute bidders led by Catalyst Capital Group and the Asper family competing against Shaw for the assets.

Goldman Sachs also has a partnership with CanWest's specialty TV division that includes History Television and Food Network Canada dating back to 2007.

In an eleventh-hour bid last month, the Catalyst group offered $120 million for a 32% equity stake and voting control of the restructured CanWest broadcast arm.

But a Toronto court rejected Catalyst’s request to delay approval of the Shaw Communications offer and approved its bid for a 20% share of CanWest for an estimated $95 million.

That deal would see CanWest’s broadcast properties swallowed up into a cable company, which has some stakeholders concerned.

In total CanWest Global operates 18 specialty channels and owns five. The company filed for bankruptcy protection in October last year after struggling under almost $4 billion in debt.

The group's newspapers, which include titles such as the Vancouver Sun and Calgary Herald, are being sold as part of a separate reorganization plan. The deadline for offers expired Friday.

Also on Wednesday, a commercial court handling the bankruptcy proceedings announced the appointment of legal counsel for CanWest salaried employees and retirees.

CanWest was founded by Izzie Asper, who bought the assets of North Dakota station KCND-TV in 1974. He built the group through a series of acquisitions, with aspirations of becoming a global media power.

The acquisitions took their toll on the company’s financial position, running up debts that became unmanageable when global economies collapsed and advertising revenue dried up.

Asper’s son, Leonard, stepped down from his post as chief executive last week to avoid potential conflicts of interest.