UPDATE 1-Telus, Mason settle dispute; share plan to proceed

Fri Jan 25, 2013 11:03am EST
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* Share consolidation to start in early February

* Telus common shares will trade on NYSE

By Allison Martell

Jan 25 (Reuters) - Canadian telecommunications company Telus Corp said on Friday it had settled a dispute with U.S. hedge fund Mason Capital Management LLC, and will go ahead with a share consolidation plan in February.

Mason, until recently Telus' biggest shareholder, had tried to block the plan to consolidate voting and non-voting shares on a one-for-one basis.

Telus said the two sides agreed to end their legal battle, adding that their agreement "does not involve the payment of funds to either party."

The consolidation means Telus' voting shares will trade on the New York Stock Exchange for the first time. Right now, only non-voting shares trade in New York.

In November, Telus said it believed Mason was selling down its positions, which the fund built up after Telus first floated the consolidation plan last February.

Mason took simultaneous long and short positions in Telus voting and non-voting shares, and thus stood to benefit if the spread between the two classes widened, according to court documents from December.   Continued...