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Goldcorp Inc. Message Board

  • mardermj mardermj Oct 22, 2006 9:48 AM Flag

    Teachers Opine: Merger Against Public Interest

    When the teachers in Ontario rely in full faith on the charter of a firm that is a dividend producing organization, they rely in the public interest. How much effect this has at the first court levels is iffy, but if this were the United States, there is precedent for the public interest to overrule even those laws that protect the corporate oligarchy that rules GG. In 1974, a legal contract for the delivery of uranium at ungodly low prices threatened to bankrupt the tendering organization. The US Supreme Court ruled that an unconsciobable contract and voided it. Even if GG shareholders are ignored at the lowest court levels, there is logic, if not precedence for overruling in a public interest.

    Lets see how sharp the folks in Rob's corner are.....

    The Ontario Teachers� Pension Plan is an independent corporation responsible for investing the fund�s assets and administering the pensions of Ontario�s 163,000 elementary and secondary school teachers and 101,000 retired teachers. The plan had net assets of $96 billion at December 31, 2005. The Ontario Teachers� Pension Plan is leading the way in Canada on corporate governance issues and we are pleased they have decided that transactions like Goldcorp and Glamis are proposing require a vote!


    www.otpp.ca

    Goldcorp-Glamis merger an example of transaction that should require shareholder vote
    Toronto (October 20, 2006): In a meeting today with officials at Goldcorp Inc., the Ontario Teachers� Pension Plan (OTPP) stated that the share dilution that will result from mergers like that of Goldcorp Inc. and Glamis Gold Ltd. should require shareholder approval.

    �This is a matter of principle for shareholders,� said Brian Gibson, Senior Vice-President, Public Equities, OTPP. �The number of shares being issued by Goldcorp to acquire Glamis is roughly 66% of the number of Goldcorp shares outstanding today. We think this is well beyond the level where shareholder input should be sought.�

    Noting that Canadian stock exchange rules no longer impose meaningful limits on listed issuers when it comes to issuing shares for acquisitions of reporting issuers, Mr. Gibson said �other jurisdictions recognize that, although boards are entitled to some latitude in issuing new shares for acquisitions or financings, shareholders get a say when the dilution goes beyond a certain point.�

    Mr. Gibson said that OTPP recently approved amendments to their proxy voting guidelines lowering the threshold for additional share issuances to 25%. The New York Stock Exchange has a 20% restriction.

    The Ontario Teachers� Pension Plan is an independent corporation responsible for investing the $96 billion fund and administering the pensions of Ontario�s 163,000 elementary and secondary school teachers and 101,000 retired teachers.

    For more information and/or a copy of the revised proxy voting guidelines, contact:

    Deborah Allan
    Director, Communications and Media Relations
    Ontario Teachers' Pension Plan
    (416) 730-5347

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    • the_arrangement_is_flawed the_arrangement_is_flawed Oct 22, 2006 3:56 PM Flag

      When the teachers in Ontario rely in full faith on the charter of a firm that is a dividend producing organization, they rely in the public interest. How much effect this has at the first court levels is iffy, but if this were the United States, there is precedent for the public interest to overrule even those laws that protect the corporate oligarchy that rules GG. In 1974, a legal contract for the delivery of uranium at ungodly low prices threatened to bankrupt the tendering organization. The US Supreme Court ruled that an unconsciobable contract and voided it. Even if GG shareholders are ignored at the lowest court levels, there is logic, if not precedence for overruling in a public interest.

      Lets see how sharp the folks in Rob's corner are.....

      The Ontario Teachers� Pension Plan is an independent corporation responsible for investing the fund�s assets and administering the pensions of Ontario�s 163,000 elementary and secondary school teachers and 101,000 retired teachers. The plan had net assets of $96 billion at December 31, 2005. The Ontario Teachers� Pension Plan is leading the way in Canada on corporate governance issues and we are pleased they have decided that transactions like Goldcorp and Glamis are proposing require a vote!


      www.otpp.ca...

      Goldcorp-Glamis merger an example of transaction that should require shareholder vote
      Toronto (October 20, 2006): In a meeting today with officials at Goldcorp Inc., the Ontario Teachers� Pension Plan (OTPP) stated that the share dilution that will result from mergers like that of Goldcorp Inc. and Glamis Gold Ltd. should require shareholder approval.

      �This is a matter of principle for shareholders,� said Brian Gibson, Senior Vice-President, Public Equities, OTPP. �The number of shares being issued by Goldcorp to acquire Glamis is roughly 66% of the number of Goldcorp shares outstanding today. We think this is well beyond the level where shareholder input should be sought.�

      Noting that Canadian stock exchange rules no longer impose meaningful limits on listed issuers when it comes to issuing shares for acquisitions of reporting issuers, Mr. Gibson said �other jurisdictions recognize that, although boards are entitled to some latitude in issuing new shares for acquisitions or financings, shareholders get a say when the dilution goes beyond a certain point.�

      Mr. Gibson said that OTPP recently approved amendments to their proxy voting guidelines lowering the threshold for additional share issuances to 25%. The New York Stock Exchange has a 20% restriction.

      The Ontario Teachers� Pension Plan is an independent corporation responsible for investing the $96 billion fund and administering the pensions of Ontario�s 163,000 elementary and secondary school teachers and 101,000 retired teachers.

      For more information and/or a copy of the revised proxy voting guidelines, contact:

      Deborah Allan
      Director, Communications and Media Relations
      Ontario Teachers' Pension Plan
      (416) 730-5347

 
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