Monday, December 22, 2008

Could Canwest go bankrupt?

Despite Asper’s protests, analysts say Canwest is actually in dicey financial shape. One respected mutual fund manager with a large holding in the company’s stock (who spoke on the condition of anonymity) lists off the reasons why: “One, almost all media properties are selling at a depressed price,” he wrote in an email. “Two, media properties in general are facing huge challenges from Internet, cable, and new technology. Three, management have made several questionable acquisitions at high prices (looking with hindsight). Four, they compounded the problem with high leverage.” And finally: “Five, the Street does not think highly of current management.”

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