Thursday, April 26, 2012

The Curious Case of the Telus Proxy Battle


The proxy battle involving the Telus Corporation, the $19 billion Canadian telecommunications company, is shaping up to be the most interesting of the year, involving allegations of empty voting, vote buying and secret share accumulations. What fun according to Dealbook.

It began on Feb. 21, when Telus announced it would collapse its dual-class share structure. The two classes of shares are identical, except that one has voting rights.

The structure is a relic of Canadian government regulations and ownership restrictions, which cap Telus’s foreign ownership at 33.3 percent. In 1999, Verizon, based in the United States, acquired a 26 percent stake in Telus. To avoid running afoul of the rules, Telus issued nonvoting shares and listed them on the New York Stock Exchange and Toronto Stock Exchange. Telus’s voting shares remain listed only on the Toronto Stock Exchange….

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