CRTC dismisses Globalive foreign ownership complaint
Reservation applications may be restricted due to jump in foreign ownership
VANCOUVER, Dec. 6, 2012 /CNW/ - The CRTC yesterday dismissed a request from
Globalive/WIND 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."
Reservation applications may be restricted
TELUS has observed several trades of large blocks of its common shares on the
Toronto Stock Exchange on November 29 and 30 and received reservation
applications for the purchase of shares by non-Canadians for a similar amount
of common shares. TELUS has also observed a significant increase in the short
position in TELUS common shares in recent days.
The foregoing observations are consistent with Mason Capital and/or its funds
re-establishing a significant long position in common shares and shifting
their short position primarily to common shares. 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. This proposal previously received strong
shareholder support on October 17.
On November 30, TELUS stated that "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 has simply borrowed or otherwise acquired shares on a short-term basis
at month-end to avoid a reporting obligation."
Due to this 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 per cent foreign ownership
level. The application and reservation system for the purchase of common
shares by non-Canadians is a control which allows TELUS to determine if
foreign ownership levels remain under the threshold.
On November 30, TELUS disclosed it had observed a material reduction in the
non-Canadian ownership of its common shares to approximately 15 per cent as of
November 16, 2012. That was down from almost 33 per cent when TELUS disclosed
foreign ownership levels in March and July, and is consistent with TELUS'
typical foreign ownership levels for the last few years.
TELUS also observed a significant reduction in the short positions being held
of its common and non-voting shares. Based in part on this change in foreign
ownership levels and short trading positions, TELUS believed Mason Capital had
materially reduced both its long and short positions in the company.
Forward looking statement:
This news release contains statements about expected future events of TELUS
that are forward-looking. By their nature, forward-looking statements require
the Company to make assumptions and predictions and are subject to inherent
risks and uncertainties. There can be no assurance that the share exchange
proposal will receive Court approval and, if not approved, the market price of
non-voting shares and/or common shares may decline given that share prices in
both classes increased on the announcement of the February proposal. Also,
there can be no assurance that a court decision will be released within
expected timelines or that there will not be further court challenges or
appeals. In addition, foreign ownership levels are based on estimates and
there can be no assurance that levels will not change. There is significant
risk that the forward-looking statements will not prove to be accurate.
Readers are cautioned not to place undue reliance on forward-looking
statements as a number of factors could cause actual future events to differ
materially from that expressed in the forward-looking statements. Except as
required by law, TELUS disclaims any intention or obligation to update or
revise forward-looking statements.
TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications company
in Canada, with $10.8 billion of annual revenue and 13.0 million customer
connections including 7.6 million wireless subscribers, 3.4 million wireline
network access lines, 1.3 million Internet subscribers and more than 635,000
TELUS TV customers. Led since 2000 by President and CEO, Darren Entwistle,
TELUS provides a wide range of communications products and services including
wireless, data, Internet protocol (IP), voice, television, entertainment and
In support of our philosophy to give where we live, TELUS, our team members
and retirees have contributed more than $260 million to charitable and
not-for-profit organizations and volunteered 4.2 million hours of service to
local communities since 2000. Fourteen TELUS Community Boards lead TELUS'
local philanthropic initiatives. TELUS was honoured to be named the most
outstanding philanthropic corporation globally for 2010 by the Association of
Fundraising Professionals, becoming the first Canadian company to receive this
prestigious international recognition.
For more information about TELUS, please visit telus.com.
For media inquiries, please contact: Shawn Hall TELUS Social and Media
Relations 604-619-7913 email@example.com
For investor inquiries, please contact: Robert Mitchell TELUS Investor
Relations 647-837-1606 firstname.lastname@example.org
SOURCE: TELUS Corporation
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CO: TELUS Corporation
ST: British Columbia
-0- Dec/06/2012 13:30 GMT
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