Friday, 1 August 2014
Last updated 8 min ago
Nov 2 2012 | 2:20am ET
Mason Capital Management has won a major court victory in its battle with Canadian telecommunications firm Telus Corp.
The British Columbia Court of Appeal ruled in the activist hedge fund's favor, affirming its right to "empty voting" and to hold a competing shareholders meeting. The ruling overturned a lower-court ruling in Telus' favor, which blocked such a meeting.
Mason objects to Telus' plan to merge its voting and non-voting share classes by exchanging the latter for the former on a one-for-one basis. Mason has argued that the plan is unfair to voting shareholders, including itself, with a 19% stake, who paid more for that privilege than non-voting shareholders.
Telus has argued that the plan improves corporate governance, and has opposed Mason's plan to hold a competing shareholder meeting. But the Court of Appeal found that the lower court exceeded its authority, noting that there is no statutory ban on empty voting.