Goldman Sachs to appeal Canwest Global stake

Investment bank tries to stop Shaw from controlling Canwest

TORONTO -- Goldman Sachs & Co. is to appeal a lower Ontario court decision to give cable operator Shaw Communications a controlling stake in Canwest Global Communications Corp., the Montreal Gazette newspaper reported Wednesday.

In court documents expected to be filed Wednesday, the Wall Street investment bank will argue U.S. bondholders have "functionally held a hammer over Canwest's directors," and control the destiny of the Canadian broadcaster as it attempts to emerge from court-directed creditor protection.

The U.S. bondholders are backing Shaw Communications as it moves towards acquiring a controlling interest in Canwest Global for $95 million.

Goldman Sachs owns 13 Canadian cable channels that Canwest Global operates on its behalf, and contends Shaw is using the shareholder restructuring process to extract better terms on how the broadcast assets are run and are to be bought out in 2011.