Friday, 1 July 2016
Last updated 2 min ago
Sep 25 2012 | 11:55am ET
Activist hedge fund Mason Capital Management has unveiled its Plan B in its battle with Telus Corp.
The New York-based firm has filed a dissident proxy circular asking Telus shareholders to reject the Canadian telecommunications company's plan to consolidate its share classes. Mason, which owns 19% of Telus' voting shares, objects to the plan, which would merge voting and non-voting shares on a one-for-one basis, with no premium offered to the former.
Mason's move comes after a British Columbia court blocked its bid to hold a meeting of voting shareholders. The hedge fund is appealing the decision.
Mason shareholders are to vote on the proposals on Oct. 17.
"Telus' actions stand to set a very dangerous precedent in corporate Canada," Mason's Michael Martino said.