Saturday, 27 August 2016
Last updated 15 hours ago
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."