VANCOUVER – After apparently selling off its shares in Telus last month, Mason Capital is now “re-establishing a significant long position in common shares and shifting their short position primarily to common shares,” reports Telus.
The carrier cautions that due to the sudden increase in foreign ownership levels, Telus' transfer agent (Computershare) may not be able to approve new applications by non-Canadians to purchase Telus common shares, if that purchase would risk causing the company to exceed the federally mandated 33.3% foreign ownership level.
Telus says the re-established long common share position at November month-end could allow Mason to avoid having to publicly file an updated report on its ownership of Telus shares under the Alternative Monthly Reporting System.
“Meanwhile Mason's concurrent shorting of common shares would continue to minimize their net investment. However, by significantly shifting their short position from non-voting shares to common shares Mason would reduce their exposure to the spread between the two classes of Telus shares related to a forthcoming BC Supreme Court decision on whether to grant the final order under a plan of arrangement to approve Telus' one-for-one share exchange proposal,” explained Telus in a statement.
Telus notes the proposal previously received strong shareholder support on October 17.
Yesterday the CRTC dismissed a request from Globalive (WindD Mobile ) to review Telus' foreign ownership levels, stating that it was "satisfied that Telus' mechanisms for ensuring its compliance [with the regulated limit] are consistent with the provisions and requirements established in the regulations."
