Proxy advisory services are playing an increasing role in corporate acquisitions in Canada.
By Robert Todd
AVOURITES E
PICKING
arlier this year, the TSX-listed company Coalcorp Mining Inc. announced plans to sell its primary asset, the La Francia mine, and other assets to a subsidiary of the Goldman Sachs Group Inc. for $151 million. Following the news, Blue Pacific Assets Corp. — a company controlled by former Coalcorp directors — sought a court order halting the deal, claiming it was owed about $2 million in royalties. The litigation followed a previous lawsuit launched by Coalcorp. In the previous court action Coalcorp sought $161 million from the former directors and officers, based on allegations that they engaged the company in transactions contrary to its and its shareholders' interests. Enter a Jan. 28 press release from Coalcorp, proudly announc-
ing, "Independent proxy advisory firms recommend shareholders support Coalcorp's proposed transaction." The announcement
outlined that both the Institutional Shareholder Services Inc. unit of RiskMetrics Group and Glass Lewis & Co. had released reports advising shareholders to back the deal with Goldman Sachs. Despite some shareholders complaining that Coalcorp could have sold
INHOUSE APRIL 2010 • 17
