Sept 12 Canadian telecommunications provider
Telus Corp said a court has ruled that its largest
investor, hedge fund Mason Capital Management LLC, cannot hold a
meeting of its shareholders to consider a proposal that could
have thwarted the company's share consolidation plan.
The U.S. hedge fund is locked in a bitter dispute with Telus
over the Vancouver-based company's revived plan to consolidate
its voting and non-voting stock on a one-for-one basis.
The U.S. hedge fund, which held 19 percent of Telus's voting
shares as of March 31, requested a shareholder meeting in early
August, but the Telus board turned it down. Then Telus announced
its own meeting for Oct. 17.
Mason maintains that voting shareholders paid more, on
average, for their stock than non-voting shareholders and should
be rewarded for that as the two classes merge. Telus says
universal voting rights are consistent with good corporate
The Supreme Court of British Columbia determined that the
actions of Mason Capital were contrary to law and that Mason's
meeting and resolutions will not proceed, Telus said in a
In August, Mason Capital called a shareholder meeting on
Oct. 17, the same day as Telus planned to hold a meeting of its
own, prompting Telus to say it would ask a court to intervene on
Telus added that it will go ahead with its shareholder
meeting on the same date.
Telus and its two biggest competitors, BCE Inc's
Bell Canada and Rogers Communications Inc dominate the
Canadian telecom market.