Telus wins power fight with N.Y. hedge fund
Telecom firm goes ahead with plans to do away with dual-share structure
Telus Corp. declared victory in its battle with a New York hedge fund over the company's plans to do away with its dual-share structure and put all shareholders on the same footing.
"Our shareholders' strong support for this exchange was made clear during the shareholder vote on October 17, and we are very pleased that we can now conclude this important and beneficial share exchange," CEO Darren Entwhistle said in a statement.
Telus is trying to consolidate its voting shares in with its common shares, creating one class of shareholders on a one-for-one basis. New York hedge fund Mason Capital had opposed the plan, arguing the company should be paid a premium for its shares because it would effectively be giving up control of the company.
Mason went as far as buying up enough Telus shares to become the company's largest single shareholder. But after multiple court challenges, Mason finally abandoned its opposition this week after another court ruling found in favour of Telus' consolidation plan.
In a release, Telus said both it and Mason have agreed to abandon all litigation related to the case. "The agreement does not involve the payment of funds to either party," Telus said.
The plan will be put into action just after midnight on Feb. 4, 2013. After that happens, the company's approxmately 151 million non-voting shares on the NYSE and TSX will be delisted. By Feb. 11, 2013, the company will have single class of 326 million shares listed on both exchanges.