VANCOUVER – Telus says Mason Capital has dramatically reduced its shares in the company with its level of foreign ownership dropping from 33% to 15% (as of Nov. 16). As a result Telus says requests by non-Canadians for a reservation to purchase common shares are now being considered and approved, if they don’t risk causing Telus to exceed the foreign ownership threshold. It also noted a significant reduction in the short positions being held of its common and non-voting shares.
Mason, a New York hedge fund that owned almost 20% stock in the carrier, battled for months to thwart Telus’ attempts to merge its dual-class share structure into a single class of common stock. In the end Telus was successful in convincing a majority of stockholders to reject Mason’s proposal in a vote last month.
Since the decision a Supreme Court of British Columbia hearing was held to hear appeals by Mason of previous decisions and for final approval of the share exchange. A decision is expected in the coming weeks.
Telus says Mason last disclosed its ownership levels in August, which was 18.7 % of Telus common shares. “Notably, given the current total foreign ownership level of only 15 % and historical level of approximately 13%, Mason has clearly reduced a significant portion of its holdings,” writes Telus in a statement.
The Alternative Monthly Reporting System under which Mason has previously disclosed its trading position in Telus shares only requires disclosure within 10 days of the end of a month in which there is a material change in the position. Accordingly, it is possible that Mason may borrow or otherwise acquire shares on a short-term basis at month-end to avoid a reporting obligation notes Telus.
Telus also indicated it will disclose its 2013 financial targets on February 15, 2013, when it also releases its 2012 fourth quarter results.
