Hedge fund Mason Capital Management is waving the white flag in its battle with Canada's Telus Corp.
Telus said today that the two sides have agreed to end their legal battle over the telecommunications company's plan to consolidate its voting and non-voting share classes. Telus said it would move forward with the plan, which Mason said was unfair to the company's voting shareholders, in February.
No money will change hands as part of the agreement.
For its part, Mason appears to have been laying the groundwork for its capitulation by late last year, despite a court victory against Telus. Telus in November said it believed that Mason had been selling its stake in the company, and it was right: Mason owned just 3.4% of Telus' common, voting shares on Dec. 31, compared to 19% earlier last year.
Mason had complained that Telus' plan to merge its share classes on a one-for-one basis was unfair, as voting shareholders paid more for that privilege than non-voting shareholders paid for their stock. The two sides had fought over plans to hold competing shareholders meetings.