SHAW HAS LITTLE TO CELEBRATE ON ANNIVERSAY OF WIC DEAL
Globe & Mail - Friday, March 12, 1999
This is an interesting article in today's G&M; there's an area that pertains to Newbridge which reads:
...Last month, Newbridge Networks Corp. filed a lawsuit seeking $900 million in damages from WIC Connexus, which has a licence to offer local multipoint communication services (LCMS) in more than 30 Canadian markets, because Connexus cancelled a $200 million contract to buy LMCS equipment.
Mr. Shaw said the original agreement with CanWest last August anticipated that Shaw would get Connexus, along with WIC's 12 radio stations, specialty channels and its stake in Canadian Satellite Communications Inc., a satellite signal distributor. CanWest was to get WIC's nine over-the-air television stations.
What will happen this time, is, if you keep Connexus, you get something else big that goes with it, "Mr. Shaw said. "A lawsuit".
That complicates an already difficult situation, the analyst said.
Mr. Shaw is concerned about the uncertainty.
"It has a good team of staff", he said. "But it's hard when a company is in this kind of transition to maintain its profile and any kind of advantage that it has. My concern is that we don't solve the WIC problem and things continue."
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This bodes well for Newbridge's lawsuit. Clearly it's showing that Shaw is concerned about its potential outcome.
P.S. Am not a lawyer, but sounds like an ominous sign for WIC's
case.
Regards,
Glenn |
