This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Mason Capital Urges Shareholders To Vote The Blue Proxy And Reject TELUS’ One-for-One Share Collapse Proposal

Stocks in this article: TTU

Mason Capital Management LLC ("Mason") today reiterated several serious concerns with the actions of TELUS Corporation (TSX:T, T.A; NYSE: TU) relating to its proposal to exchange all of its non-voting shares for voting shares on a one-for-one basis. The proposal is scheduled to be voted on at an October 17 meeting of TELUS shareholders.

TELUS voting shares historically are more valuable than non-voting shares and have traded at a premium. In the 13 years prior to TELUS’ initial proposal in February 2012, $98 billion in TELUS voting shares traded at an average premium of 4.83% relative to the non-voting shares, with the premium reaching as high as 15.23%. This proposal, if passed, will result in a loss of substantial value to the class of voting shareholders, which Mason estimates at approximately $200 million based on the elimination of the historical premium. In addition, voting shareholders will be forced to relinquish 46% of their voting power and will receive no compensation. Leading proxy advisory firm Institutional Shareholder Services Inc. (“ISS”) recognizes the flaws associated with TELUS’ proposal, stating that: “The proposed exchange ratio… in veering off from the well-established, enduring market ratio, is a cause for concern, and should legitimately be scrutinized by shareholders.” 1

Michael Martino, Mason’s principal and co-founder, said: “It is imperative that all voting shareholders arm themselves with the facts about the true economic implications of TELUS’ proposal, which based on precedents, is one of the worst offers for holders of shares with superior voting rights in a share collapse seen in Canada in over a decade. Mason would support a share collapse at an exchange ratio that accounts for the superior value of the voting shares in the same way the market has accounted for that superior value for over 13 years. We urge shareholders to reject this oppressive proposal and force TELUS management to come back with an exchange ratio that provides voting shareholders with the compensation they deserve.”

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,792.63 -22.31 -0.13%
S&P 500 2,068.38 +1.35 0.07%
NASDAQ 4,771.3060 +13.0540 0.27%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs