Canadian incumbent Telus said it believes activist investor Mason Capital has reduced a “significant portion” of its holdings in the operator.
Telus said its foreign ownership levels had fallen from close to 33% – the maximum allowed by Canadian law…
Canadian incumbent Telus said it believes activist investor Mason Capital has reduced a “significant portion” of its holdings in the operator.
Telus said its foreign ownership levels had fallen from close to 33% – the maximum allowed by Canadian law – down to 15%.
The New York-based hedge fund previously held roughly 20% of Telus’ stock and was its largest single shareholder.
The telco said it had observed a significant reduction in the short positions being held of its common and non-voting shares. Due to the drop, requests by non-Canadians for a reservation to purchase common shares are now being considered and approved.
“Based in part on this change in foreign ownership levels and short trading positions, Telus believes Mason Capital has materially reduced both its long and short positions in the company,” the company said, adding: “Mason has clearly reduced a significant portion of its holdings.”
The move could mark the end of a bitter feud between Mason and Telus.
Last month the Canadian telco won its long-running battle with Mason after its shareholders approved the collapse of its dual-class share structure.
Telus had both voting and non-voting shares but announced its intention to scrap that system earlier this year, converting non-voting stock into common shares in a 1:1 conversion.
Mason disagreed with the plan, saying it would dilute the value of its voting shares. It argued that a 1:1 conversion rate did not reflect the “superior value” of the existing common shares, which historically traded 4%-5% higher than non-voting shares.
In spite of Mason’s attempts to lobby other stockholders and obstruct the proceedings, the share conversion received overwhelming approval from shareholders.
A court decision about an appeal by Mason of previous decisions and for final approval of the share exchange is expected in the coming weeks.