It is being reported that CanWest president Leonard Asper and Goldman Sachs managing director Gerry Cardinale issued a firm assurance that control of broadcasting decisions would remain in Canadian hands. This assurance is meant to give CanWest a majority of voting shares albeit in a minority position with a 36 per cent share in equity in the entity; meanwhile, 100-36=64 per cent majority position for the foreign investment bank, hooray!
While Goldman Sachs cannot cause CanWest to do anything, the foreign based partner has the ability to restrain CanWest from certain decisions and remains a role in strategic broadcasting decisions. Criticisms by the national actor’s union, ACTRA, in a recent statement have denounced the deal as foreign ownership of Canadian media through the back door. Union president Richard Hardacre believes ‘this deal effectively gives the US company control over a Canadian broadcaster, which is a violation of the Broadcasting Act and Canadian public policy.
