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

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of