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