On February 21, 2013, TELUS announced a proposal to convert the firm's nonvoting shares into voting shares on a one to one basis, therefore removing the business's dual class structure.
Despite strong support from the board, management, two proxy advisory firms, and several big shareholders, the proposal was opposed by Mason Capital Management, a New York-based hedge fund. Mason, who commanded nearly 20% of the voting shares along with a large short position in the non-voting shares, had filed a dissident proxy circular recommending that shareholders vote against the proposition based on both substantive and procedural grounds.
With the success of the vote in doubt, the board needed to decide what to do. Should they carry on with the vote as planned, postpone the vote with the intention of re introducing the proposition sooner or later on, or cancel the proposal for good? And what should they do with Mason, which management viewed as an "empty voter" in this matter?
The TELUS Share Conversion Proposal Case Study Solution
PUBLICATION DATE: October 23, 2013 PRODUCT #: 214001-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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