Battle for Rona’s board could be put off until May while it seeks new directors

MONTREAL – A battle for control of Rona Inc. could be put off for several months after the home renovation retailer called an annual meeting for May 14 and moved to replace some of its directors.

The Quebec-based company says it has asked the head-hunting firm that is seeking a new CEO to identify potential candidates as directors as it looks to increase representation from outside Quebec.

Spokeswoman Michelle Laberge says the actions were already underway when Invesco Canada, its second-largest shareholder, announced Wednesday that it would seek to sweep out and replace the existing board.

She says executive search firm Korn/Ferry International was initially asked to seek new directors in September. Finding a replacement for Robert Dutton was only added to its mandate after the long-term chief executive resigned last week.

By announcing the annual meeting, Laberge says Rona has precluded the possibility of an earlier special meeting.

Laberge wouldn’t say how many directors could be replaced, but none of the current 11 members has expressed an interest in not seeking re-election. There are also two vacancies.

Rona will announce its list of director candidates when it issues its proxy circular in March. Any shareholder can submit its own nominees.

Invesco couldn’t be immediately reached for comment on Rona’s efforts. The shareholder is among those that are unhappy with the existing board’s unwillingness to meet with U.S. rival Lowe’s to discuss its interest in acquiring the company.

On the Toronto Stock Exchange, Rona’s shares lost 41 cents, or 3.56 per cent, at $11.11 in afternoon trading.