B.C. Supreme Court OKs Telus’s share exchange vote despite appeal court ruling

VANCOUVER – Telus says the Supreme Court of B.C. has given it permission to go ahead with a vote on its share exchange proposal despite an appeals court ruling that sided with a dissident shareholder.

The Vancouver-based telecom giant (TSX:T) says it will hold its shareholder vote to end its dual-class share structure after the court reaffirmed the validity of its plan.

Its share conversion proposal requires approval of two-thirds of the company’s non-voting share owners and a majority of common shareholder votes.

CEO Darren Entwistle says Telus is pleased with the decision, and that the court has rejected the latest legal manoeuvre by Mason Capital whose net economic ownership position in Telus is minuscule.

But Mason Capital Management was given the green light by the British Columbia Court of Appeal last Friday to go ahead with its rival meeting of voting shareholders of Telus to consider a premium for the share conversion plan.

Mason said it will ask the court for directions to hold its own meeting and will also ask for a postponement of Telus’s meeting, slated for Wednesday.