Rogers Communications ex-chair took heat for trying to jeopardize Shaw M&A, court documents show -Breaking
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© Reuters. FILE PHOTO. Edward Rogers (C), stands alongside mourners during the funeral of Ted Rogers who was president and CEO at Rogers Communications in Toronto on December 9, 2008. REUTERS/Mike Cassese CANADA/File PhotographBy Sarah Berman
(Reuters) – Independent directors at Rogers Communications (NYSE 🙂 have criticized Edward Rogers, the former chairman, for trying “insert yourself as the de facto CEO” to jeopardize the C$20 billion (C$16.1 billion) planned takeover of Shaw Communications. Court documents revealed this on Friday.
Rogers Communications is Canada’s biggest telecommunications firm. A family dispute has sparked a public fight for control. This comes as Rogers Communications is going through its largest-ever acquisition. On Monday, the Supreme Court of British Columbia will host a battle between the two factions. The judge will determine the legitimacy of the board.
Edward Rogers (son of Ted Rogers founder) tried to fire Chief Executive Officer Joe Natale late in September. Natale claimed that he had struggled to turnaround the company despite being CEO for more than four years.
Edward became disillusioned with his sister and his mother who had voted for Natale and forced him to resign as Rogers’ chairman. Edward Rogers responded by using his position of chair at Rogers Control Trust, a family-owned company that controls the majority of voting share in the company’s stock, to form a new board which was recognized as Rogers’ chairman.
Loretta Rogers, in an affidavit she submitted to the Supreme Court of British Columbia stated that her decision to file a motion to dismiss Edward Rogers came after media reports claimed that Rogers wanted to remove five independent directors through written resolution. This was against Ted Rogers wishes.
Canada’s rare family conflict is well-known. It has taken analysts and investors by shock and weighed down the stock of the company and attracted regulatory attention.
Rogers Communications’ controlling matriarch said that the independent directors tried to protect the company from Edwards’ meddling. Edward tried to get rid of independent directors without any checks and balances, and without shareholders meetings and in violation of the business judgement of majority of board members.
Rogers Communications’ spokesperson declined comment.
($1 = 1.2392 Canadian dollars)
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