3/1/2004
VANCOUVER - Western Canadian billionaire Jim Pattison has filed court documents challenging CHUM Limited's purchase of Victoria-based Seacoast Communications.
Seacoast, which owns and operates 1070 CFAX-AM and B107.3 (CHBE-FM) in the British Columbia capital,
announced it had been sold to CHUM at the end of January for $8 million, as reported by broadcastermagazine.com. Seacoast is owned by broadcast industry veteran Mel Cooper.
However, in court documents filed this week with the British Columbia Supreme Court, Pattison - who owns 20 Canadian radio stations through his company's broadcast group - wants the CHUM deal scuttled as he claims to hold the right of first refusal on any deal thanks to a 1997 arrangement between his company and Seacoast made when Pattison purchased CKLV-AM and CKLZ-FM of Kelowna from Cooper. Pattison's filing says the December 1997 agreement gave it certain "rights of first refusal'' which were to remain in effect for about 15 years, in the event Seacoast sold the Victoria stations.
Cooper told broadcastermagazine.com on Friday that Pattison holds no such right. "Our position is that we not only own the company but we have the right to sell it - and sell it to whomever we may," he said. "A judge will decide who is in the right, but our position is clear� I'm going to fight for what I think is right."
"Jimmy has just put us in a position where we have to defend ourselves," added Cooper. "I don't want to go to war with Jimmy but�"
Pattison holds no ownership position in Seacoast and Cooper said the court filing was "unexpected," especially given that the two men are friends. Cooper worked with Pattison on Expo 86 in Vancouver and was once chairman of Air BC when Pattison owned that company. "But I should expect the unexpected with Jimmy," he added.
Cooper says that he did not auction off his company to the highest bidder but instead chose CHUM as a buyer because he felt that the company's values most closely resembled his own. "They are radio people through and through," said Cooper.
Plus, he added, Pattison had chances to buy Seacoast, but "he never came to the table with a price that was even close" to what Cooper wanted.
Seacoast and CHUM must respond to the lawsuit within 21 days of its filing last week and Cooper said his lawyers expect a court date sometime in April.
CHUM has already applied to the Commission to transfer the licenses and a statement issued by the company says it has no knowledge of any agreement held by Pattison.
A Pattison executive declined to comment on the matter when contacted by broadcastermagazine.com. The court documents say Pattison is interested in buying the stations and failing that, is asking for damages.
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