Ontario Teachers' to vote against Magna plan

Tue Jul 13, 2010 11:47am EDT
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TORONTO (Reuters) - The Ontario Teachers' Pension Plan said on Tuesday that additional information offered by Magna International on its proposal to eliminate its multiple-voting shares does not ease its concerns and it will vote against the deal.

The pension plan is only a minor shareholder in Aurora, Ontario-based Magna but still has influence as it runs one of the biggest investment funds in Canada. It called Magna's proposed payment of nearly $900 million in cash and stock to Magna founder Frank Stronach in return for him giving up his controlling class B shares in the company "unprecedented and excessive".

Magna has rescheduled a shareholder vote on the proposal for July 23 after an Ontario regulator ordered it to provide more information on the deal, forcing it to scrap a late June vote.

(Reporting by John McCrank; editing by Peter Galloway)