Rogers shares slide as battle for management of board deepens
TORONTO, Oct 25 (Reuters) – Shares in Rogers Communications Inc (RCIb.TO) tumbled greater than 6% on Monday as a household feud over the management of the board deepened after rival factions claimed they had been answerable for certainly one of Canada’s largest telecom firms.
Late on Sunday, former Chairman Edward Rogers issued an announcement saying he intends to provoke authorized proceedings within the British Columbia Supreme Court to substantiate the shareholder decision that created his reconstituted board. learn extra
That comes after the corporate’s board final week voted to take away Edward Rogers, son of late founder Ted Rogers, as chair after he tried to interchange CEO Joe Natale with one other government. The transfer put him at odds along with his sisters and mom. learn extra
An announcement on Sunday from a Rogers Communications spokesperson reiterated Ted Rogers’ widow’s and two daughters’ assist for Natale.
While household variations and disagreements at a board stage are usually not unusual, a public spat is uncommon within the Canadian company panorama.
It comes as Rogers is in the midst of its biggest-ever takeover, with its C$20 billion ($16.2 billion) bid for smaller rival Shaw Communications Inc (SJRb.TO), which has attracted the eye of regulators in Canada’s extremely concentrated telecoms market.
Both sides of the household have stated they assist the deal.
Brokerage Canaccord Genuity lower its score on Rogers’ shares to “hold” from “buy”.
Believe the present state of affairs with respect to company governance at Rogers is yet one more reminder to buyers of the variations between BCE/TELUS and family-controlled entities with dual-class capital buildings, Canaccord analysts stated in a word.
Rogers’ shares fell as a lot as 6.2%, whereas the broader market was flat. Even earlier than Monday’s fall, the inventory was trailing friends. Rogers shares are up 1.3% yr to this point, whereas rivals Telus Corp (T.TO) and BCE Inc (BCE.TO) have gained 13.8% and 16%, respectively.