Court Rules In Mason's Favor In Telus Appeal

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.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...