Focus now on Shaw as company tells CRTC hearing must proceed as planned
TORONTO – Rogers Communications Inc. announced Sunday evening it will not seek an appeal of Friday’s British Columbia Supreme Court ruling, which settled the matter of who is actually on RCI’s board of directors. This would seem to put an end weeks of drama over who controls the company.
On Friday, Justice Shelley Fitzpatrick ruled in favour of Edward Rogers, chair of the Rogers Control Trust, who was seeking orders related to the board changes he made by written resolution in late October, which were subsequently declared “invalid” by RCI.
When the ruling was first announced, RCI lawyer Stephen Schachter asked for a stay until Tuesday to give them the chance to seek a stay from the Court of Appeal so the orders would not come into force until after RCI had a chance to appeal the decision.
The judge denied the Schechter’s request, and so effective Friday, John Clappison, David Peterson, Bonnie Brooks, Ellis Jacob and John MacDonald were no longer members of the RCI board while Michael Cooper, Jack Cockwell, Jan Innes, Ivan Fecan and John Kerr have replaced them.
As indicated in an RCI press release Friday evening, Mr. Rogers is the current chair of RCI pursuant to an Oct. 24 resolution of the board (RCI CEO Joe Natale, Melinda Rogers, Martha Rogers and Loretta Rogers were not in attendance at the meeting during which the resolution was passed).
A statement made by Mr. Rogers Friday indicated Natale remains RCI CEO and has the board’s support.
“There is closure and clarity regarding the legal issues,” said BMO Capital Markets media and telecom analyst Tim Casey in a note to investors. The question of management is less clear.
“Based on filings in the court case, the relationship between the Chairman and CEO remains a concern for shareholders,” Casey said. (It is no secret Mr. Rogers had plans in motion to replace Natale as CEO.)
The BMO analyst further noted: “While there is still uncertainty regarding management roles, the near-term outlook implies values in the shares.”
One thing that is clear right now is the Shaw deal is a high priority for everyone involved.
“Statements from all parties over the weekend highlight the priority and urgency of the Shaw transaction. In fact, a review of affidavits filed shows this is an issue on which there was complete unity among Rogers family, board members, and management,” Casey wrote.
This commitment to the Shaw deal is highlighted in a document RCI submitted to the CRTC today in response to a procedural request submitted to the Commission by the Public Interest Advocacy Centre and National Pensioners Federation (PIAC-NPF).
PIAC-NPF’s request indicated concern over the battle for control of RCI that was unfolding at the time and over whether the officers of the company would remain in their positions in the near future.
RCI submitted an initial response Nov. 2, which argued the hearing scheduled to start Nov. 22 should not be delayed.
The document the company submitted today highlights Friday’s decision and the company’s announcement it would not be seeking to appeal the decision to underscore its argument the hearings should proceed as planned.
“The judgement of the British Columbia Supreme Court effectively resolves the matter that gave rise to the PIAC-NPF procedural request and should, therefore, result in a denial of that request,” reads the document.
RCI also reiterated comments made by Mr. Rogers Friday evening, stating Natale continues to be the company’s CEO and has the board’s support.
