Telus shareholders back share consolidation plan

Wed Oct 17, 2012 7:18pm EDT
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TORONTO (Reuters) - Telus Corp said on Wednesday its shareholders have voted in favor of a proposal to exchange the company's non-voting shares for common shares on a one-for-one basis.

Mason Capital Management LLC, the largest shareholder in Telus, has been locked in a bitter dispute with Telus for months over the Vancouver-based telecom company's plan to consolidate its voting and non-voting shares on a one-for-one basis.

Mason, which held 19 percent of Telus's voting shares as of August 31, said that voting shareholders paid more, on average, for Telus's stock than non-voting shareholders and should be rewarded for that as the two classes merge. Telus in response argued that universal voting rights are a good corporate governance practice.

"The outcome of today's shareholder vote is distinctly positive for Telus shareholders," said Telus's Chief Executive Darren Entwistle in a brief statement. "Shareholders made clear their desire to enhance shareholder value through improved trading liquidity and augment Telus' already excellent corporate governance by adopting a single class."

The company said it will release detailed voting results later on Wednesday. A final hearing before the British Columbia Supreme Court to approve the share exchange is set for the week of November 5.

(Reporting by Euan Rocha; editing by Carol Bishopric)