US hedge fund Mason Capital is looking to sell its 19% stake in Canadian telco Telus reports The Globe and Mail, citing a person familiar with the situation.
The move comes ahead of a proposed relaxation of foreign ownership rules put forward by the…
US hedge fund Mason Capital is looking to sell its 19% stake in Canadian telco Telus reports The Globe and Mail, citing a person familiar with the situation.
The move comes ahead of a proposed relaxation of foreign ownership rules put forward by the Harper government that could be approved later this year.
Mason has hired Blackstone to sell its C$2bn stake and the bank has contacted up to 30 prospective buyers according to the report. Among them are other investment companies and also strategic buyers. The paper reports the process began in mid-May.
The hedge fund flexed its muscles last month when it forced Telus to withdraw a plan to convert its non voting-stock into common shares at a 1:1 ratio. Mason argued that the common stock had traditionally traded 4% – 5% higher than non-voting shares, which should be reflected in the share conversion proposal.
The non-voting shares will automatically become voting stock should foreign ownership limits be eliminated, The Globe and Mail wrote. This is because the dual-class structure is designed to collapse in such a scenario. As Mason hold shares with voting rights this would dilute the value of its stock.
Regardless of whether foreign ownership rules are relaxed or not, Telus had said previously it remains committed to altering its share structure in due course.
