In the latest chapter of the ongoing saga involving Telus Corp. (TSX:T) and New York hedge fund Mason Capital, Telus shareholders voted yesterday to approve Telus' 1:1 share exchange proposal.
The results showed that 81.1% of all shareholders approved of the proposal to exchange the company's non-voting shares for common shares on a one-for-one basis. Of those, common/voting shareholders voted 62.9% in favour of the proposal, and non-voting shareholders were 99.5% in favour.
Excluding the Mason Capital voters, 93% of all other voters were in favour of the proposal.
None of Mason's four resolutions was passed.
"Shareholders made clear their desire to enhance shareholder value through improved trading liquidity and augment Telus' already excellent corporate governance by adoping a single class of widely held voting shares," said Telus president and CEO Darren Entwistle.
"Fundamental Telus investor views dominated, prevailing over a self-serving hedge fund engaging in a troubling empty voting trading strategy, negative publicity campaign and multiple court challenges to try to defeat this proposal for their own profit.
"The result realized exemplifies the principles of good corporate governance and the fairness of shareholder democracy in Canada."
Peter Block of National Public Relations on behalf of Mason responded to the results of the vote, saying, “The transaction would have failed but for Telus’ reduction of the approval threshold from two-thirds to a simple majority, which Mason believes is inconsistent with the requirements of BC law and the Telus articles."
A final hearing to approve Telus' share exchange proposal before the BC Supreme Court is set for the week of November 5.
