Mason Capital Management LLC (“Mason”) today sent a letter to voting shareholders of TELUS Corporation (TSX:T) regarding the proposed dual share-class collapse transaction which is to be voted on at a general meeting of TELUS on October 17, 2012.
The letter summarizes the rationale for Mason’s opposition to TELUS’ proposal to convert its non-voting shares into voting stock on a one-for-one basis and outlines the economic impact it will have on all TELUS voting shareholders.
The text of the October 2, 2012 letter follows:
Dear Fellow TELUS Voting Shareholder:
You paid a premium for your voting rights. Now you have the opportunity to save your voting power and the premium that you paid by voting NO on TELUS' proposal to exchange its non-voting shares for voting shares on a one-for-one basis. Here are the facts about the true economic implications of what TELUS is proposing. Based on this proposal, you will be forced to:
- Relinquish 46% of the voting power you currently hold for no compensation;
- Give up the premium that you paid for your voting shares for no compensation; and
- Accept one of the worst offers for a share collapse seen in Canada in over a decade.
We understand the corporate governance goals of having one class of shareholders, but those benefits can still be attained under a share conversion with an exchange ratio that is fair for ALL TELUS shareholders.
If you vote to REJECT the unfair one-for-one conversion ratio proposed by TELUS, TELUS should return with an appropriate conversion that treats all shareholders fairly
TELUS’ October 17, 2012 meeting is rapidly approaching. We urge you to vote your BLUE proxy or voting instruction form prior to 12:00 noon (EDT) on October 15, 2012.