Mason Capital Management LLC (“Mason”) today issued the following statement regarding the British Columbia Court of Appeal’s decision to overturn the earlier decision of the Supreme Court of British Columbia, which had invalidated actions taken by CDS & Co., the registered holder of Mason's voting shares in TELUS Corporation (TSX:T; TSX:T.A; NYSE:TU) ("TELUS"), to call a general meeting of TELUS:
“We are pleased by the Court’s ruling, which fully vindicates our position that the voting shareholders of TELUS should have the opportunity to vote on a fair exchange ratio share in a share collapse transaction. TELUS has refused to consider the concerns of its voting shareholders and has demonstrated that it was prepared to go to almost any length to force through its one-to-one proposal. Now voting shareholders will have the opportunity to have a say on the critical issue of a fair minimum premium for the TELUS voting shares in a share conversion.”
In the Court’s reasons for judgment, the Honourable Mr. Justice Groberman stated that, “… despite its hedged position, Mason does hold an economic interest in TELUS. Further, its contention that the historic premium that has applied to the TELUS common shares should be preserved in any share exchange is a cogent position that could reasonably be advanced by any holder of common shares. In the exchange proposed by TELUS, the common shareholders will see a massive dilution of their voting power without any direct economic compensation or benefit.”
Mason will be applying to the court for directions in respect of the holding of the requisitioned meeting, including a postponement of the shareholder meetings of TELUS currently scheduled for October 17, 2012.