Shares in Rogers Communications lost more than 6% on Monday as a family disagreement fuelled by control of the company’s board escalated further after feuding family members claimed they were responsible for one of Canada’s largest telecommunications companies.
Former Chairman Edward Rogers issued a statement on Sunday evening expressing his intention to initiate legal proceedings in the British Columbia Supreme Court to confirm the shareholder resolution that formed his new board of directors.
The statement came after the company’s board last week removed Edward Rogers, son of late founder Ted Rogers, as chairman after he tried to replace CEO Joe Natale with another executive, putting him at odds with his sister and mother.
A Rogers Communications spokesperson also issued a statement Sunday reaffirming the support Ted Rogers’ widow and two daughters have for Natale.
TD Securities noted that the odds are now high as Edward Rogers and his supporters muster enough votes to prevail against the board of Rogers Communications thus making changes to senior management, as it slashed the stock price target by 10% to C $69.00.
Rogers is in the midst of its biggest acquisition ever, with its C$20 billion bid for smaller rival Shaw Communications Inc that has attracted regulators in Canada’s rigid telecoms market.
Both sides of the family expressed support for the acquisition.
Rogers’ shares dipped 4.9% Monday afternoon, down 3.7% year-on-year so far, while the broader market gained 0.4%. But, Telus shares have risen 11.1% so far in 2021, while BCE’s has risen 16%.
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