Shaw can opt out of Headline Sports

Calgary’s Shaw Communications is now free to sell its 48.75% interest in Sportscope Television Network, which operates specialty channel Headline Sports, an Ontario court has ruled.

The Ontario Court of Justice has dismissed an application brought by 48.75% Sportscope shareholder John Levy that sought to restrict Shaw’s ability to sell its interest in the company.

Shaw is seeking to sell its Sportscope stake following a crtc ruling last summer which denied the cable company approval of 48.75% ownership.

Levy’s application had argued that Shaw was bound by a previous shareholders’ agreement, which was inked three years before Shaw became a shareholder of Sportscope.

The court found that ‘Shaw had never agreed – expressly or by implication – to be bound contractually by the Sportscope Shareholders Agreement.’ Shaw is now ‘free to dispose of its interest in Sportscope without the approval requirement sought to be imposed by the applicants [Levy].’

Those thought to be interested in acquiring a piece of Headline Sports include CanWest Global Communications – recently scooped of sports specialty jewel NetStar by rival ctv. Alliance Atlantis Communications also had discussions about acquiring NetStar and may be interested in the Sportscope stake.