Globe and Mail – One of the more acrimonious relationships in Canadian business is on the verge of ending, as hedge fund Amaranth Advisors LLC files the paperwork needed to sell its 15-per-cent stake in DVD maker Cinram International Income Fund.
Amaranth, which is being wound down after losing most of its assets this fall, was pushing Cinram to sell itself. The manufacturer, based in Markham, Ont., aggressively rebuffed these overtures.
Last month, Cinram did moderate its stance, as the board hired investment bankers to advise on its strategic and financial alternatives, following the federal government’s decision to begin taxing income trusts. Greg Reid at Wellington West Capital Partners Inc. was one of several analysts to observe that all options are on the table, including the sale of the company.
So late Friday, Amaranth filed what’s known as a form 45-102 with the Ontario Securities Commission, which is a “notice of intention to distribute securities.” In it, the fund stated that it planned to sell its entire eight-million-share Cinram holding, which is worth $176-million at current market prices. Amaranth must file this paperwork because the fund is considered an insider at Cinram, owing to the size of its holding and the fact that an executive at the fund is on the DVD maker’s board of directors.
