Alliance Atlantis talking to possible buyers; stock surges

Alliance Atlantis Communications Inc. signalled Wednesday that it might be on the auction block, an announcement that helped propel its stock to a 15 per cent gain.

The Toronto-based film and television company said before stock markets opened that is exploring its "strategic alternatives."

Alliance Atlantisand its controlling shareholder, Southhill Strategy Inc.,have recently sought expressions of interest from selected potential buyers as to their interest in buying thecompany. Southhill Strategy is owned by Alliance Atlantisexecutive chairman Michael MacMillan and Seaton McLean.

Southhill has said no decision has been made yet on a sale, and that it may ultimately decide not to sell its stake in Alliance Atlantis.

If Southhill decides not to sell its interest, a sale of Alliance Atlantisis unlikely to occur, thecompanies said.

Shares of Alliance Atlantis gained $6.50 to close at$49 on the TSX.

Alliance Atlantis owns 13specialty television channels, includingShowcase, Discovery, the Food Network, HGTV, History Television and the Life Network. The company also co-produces and distributes the hit CSI franchise and indirectly holds a 51 per cent limited partnership interest in Motion Picture Distribution LP, adistributor of motion pictures in Canada.