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.