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Hedge fund to sell its 15% stake in Cinram

Date: Monday, November 27, 2006
Author: Canadian Press

The Canadian arm of U.S. hedge fund Amaranth Advisors LLC plans to sell its 15 per cent stake in Toronto-based Cinram International Income Fund (TSX: CRW.UN), according to documents filed with Canadian securities regulators.

Amaranth Canada Trust said it would sell the eight million units it holds in the world's largest provider of pre-recorded music, video and software on DVDs and CDs on the Toronto Stock Exchange and or privately in a filing with regulators on Friday.

A copy of the filing was made public Monday.

The Connecticut-based fund had tried to push Cinram to put itself up for sale, but was met with resistance from the Canadian company's board which said it had "no intention of selling, or exploring the possibility of selling."

Amaranth Advisors lost about $6 billion (U.S.) trading natural gas futures in September after bad bets on natural gas prices and the subsequent sale of its energy portfolio.

Cinram shares closed down 50 cents at $21.82 Monday on the Toronto Stock Exchange.