Hedge fund contests Telus research note
A U.S. hedge fund that is picking a legal fight with Telus Corp. over its failed share-consolidation plan, is now challenging a research report written by a Bay Street telecommunications analyst.
Mason Capital Management LLC, which controls just under 20 per cent of Telus's common stock, issued a statement Monday to address what it claims are "misleading statements" in a recent research note penned by Canaccord Genuity analyst Dvai Ghose.
That note was published July 11, a day after Mason filed a petition with the Supreme Court of British Columbia in an effort to force Telus to reveal more details about how investors voted on its now-withdrawn shareholder proposal. Mason has previously argued that proxy data could reveal whether Telus is in breach of foreign investment rules that prevent non-Canadians from controlling more than 33.3 per cent of the voting shares of major telecommunications companies.
In his report, Mr. Ghose suggested that even if Telus is offside on foreign ownership, it has various remedies at its disposal to correct the problem, adding those countermeasures could have the potential to hurt Mason - which recently increased its ownership stake in Telus's common shares. .
"The report incorrectly states that Telus could remove the voting rights associated with Mason's voting shares of Telus in order to remedy a failure by Telus to meet the Canadian ownership requirements," Mason said in its statement on Monday.
Mr. Ghose declined to comment on Mason's press release on Monday. Telus has previously stated that it continues to be fully compliant with foreign ownership restrictions. None of Mason's allegations has been proved in court.
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