Both leading independent global proxy advisory firms recommend TELUS proposal
Oct. 5, 2012
/CNW/ - Glass Lewis & Co is recommending its institutional investor clients vote in favour of TELUS' proposal to exchange its non-voting shares into common shares on a one-for-one basis. This follows the same recommendation last week from Institutional Shareholder Services (ISS), the other leading independent global proxy advisory firm that institutional investors rely on for advice regarding significant shareholder votes. This is the second time both firms have recommended in favour of a TELUS one-for-one share exchange proposal.
In its report Glass Lewis stated "The Company notes that, excluding Mason's holdings, approximately 92.4% of shareholders that delivered proxies supported the Initial Proposal, a clear indication that the Company's shareholders recognize and support the long-term benefits of a share conversion on a one-for-one basis."
In the conclusion of Glass Lewis's report they stated "We believe the overwhelming support from shareholders, excluding Mason, accurately depicts the value that is expected to be unlocked for long-term shareholders following the adoption of a single class share structure"… "Here, we believe the long-term benefits resulting from a simplified share structure outweigh any potential short-term gains from a high conversion ratio. Notably, as of
October 4, 2012
, the Company's common shares and non-voting shares had increased in price by 13.3% and 16.9%, respectively, since the announcement, likely, in some part, reflecting these benefits. The long-term enhanced access to capital, increased attractiveness for new investors and potential increase in liquidity resulting from the simplified share structure and possible NYSE listing outweigh the upside of a theoretical higher exchange ratio in light of the highly unique nature of the Company's articles, share structure and shareholder base. Accordingly, we recommend that shareholders vote
Glass Lewis also commented on Mason's empty voting tactics: