Mason Capital To Appeal Telus Court Rulings

Oct 18 2012 | 4:22am ET

In the latest round of a battle between Mason Capital Management and the Canadian telecom Telus, the New York-based hedge fund says it will appeal decisions in favor of Telus issued Monday by the British Columbia Supreme Court.

The hedge fund, which, through a variety of long and short positions has a 19% stake in Telus, objects to the company’s plan to collapse its shares into a single class.

Telus said that, following Monday’s court decision, it would go ahead with a joint shareholder meeting this week to vote on the share consolidation proposal and Mason’s related resolutions.

Telus also says the court agreed that to succeed, the proposal required a simple majority of its common shareholders and two-thirds non-voting share class.

Mason disagrees and says a simple majority vote by the voting shareholders on the conversion plan is less than the law and Telus’ governing rules require.

The hedge fund also says shareholders need more time and information to vote responsibly.

"We believe it is critical that the owners of the voting shares have the opportunity to vote on a binding change to the company's articles to establish an appropriate minimum premium to be paid in a dual class collapse transaction," the hedge fund said in an earlier statement. "Mason will continue to oppose the actions of Telus aimed at unfairly taking value from the voting shareholders and transferring it to the non-voting shareholders, which include Telus' board of directors and executive management team, at a 1-for-1 exchange ratio."


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.