Tuesday, April 9, 2013
A recent paper by Ringe, The Telus Saga, provides an additional example of empty-voting. Until now, we have contented ourselves with the Mylan/King transaction.
Abstract: The recent conflict between Canadian telecommunications provider Telus and US-based hedge fund Mason Capital is the most recent illustration of 'empty voting' – a strategy whereby activist investors eliminate their risk exposure to shares in target companies to pursue idiosyncratic motives. As courts are struggling to find adequate solutions, regulators worldwide are called upon to provide reliable tools to this threat to shareholder voting.