New York (HedgeCo.Net) – Canadian telecommunications company TELUS has launched legal proceedings against New York hedge fund Mason Capital. The Canadian company is seeking a court order to invalidate the hedge fund’s attempt to hold a shareholder meeting.
The telecommunication company believes that the hedge fund is trying to take away key benefits for all shareholders that would result from approval of TELUS’ proposal to collapse its dual-share classes.
TELUS called a court-approved shareholder meeting for October 17, where all shareholders will get a vote on the share exchange proposal. Mason then announced another meeting for the same day.
“Mason Capital’s announcement of a second meeting the same day is an absurd tactic designed to confuse shareholders in the hope of widening the spread between the trading price of the company’s common and non-voting shares so that Mason can profit from their empty voting trading strategy,” said Robert McFarlane, TELUS CFO and Executive Vice-President.
“We believe that Mason’s meeting and resolutions are undemocratic and invalid under Canadian law,” added Mr. McFarlane. “Mason is proposing to remove key rights held by TELUS’ non-voting shareholders without giving them an approval right. More than that, Mason’s resolutions would take away key benefits for all shareholders that would result from approval of TELUS’ proposal to collapse its dual-share classes. TELUS shares would enjoy enhanced trading volumes, liquidity and marketability and TELUS common shares would be listed on the New York Stock Exchange for the first time. Mason’s attempt to hold a separate shareholder meeting is contrary to corporate law, good governance and shareholder democracy and therefore we intend to halt this inappropriate move.”
Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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