Small Terasen investors saw the danger
Date: Monday, October 31 2005
MONEY TALKS AND ANOTHER GOOD CANADIAN CO. HEADS SOUTH
On Oct. 18th, I attended a Terasen Gas Shareholders' Meeting whose purpose was to approve the sale of Terasen to Kinder Morgan.
There were several hundred shareholders present who spoke passionately AGAINST this sale. As a matter of fact, the only people who spoke FOR this proposed sale at this meeting were the people sitting on the podium, among them Mr. John Reid,Terasen's President, who stands to benefit from this sale to the tune of millions.
In spite of the many shareholders who were against the sale and the sound arguments presented by them, the votes came in overwhelmingly to sell Terasen. And why did this happen? It appears that there are some shareholders and institutional investors who hold large blocks of shares and since each share gets one vote those who held these large blocks of shares were able to bring about this result.
You see, the smaller investors saw the dangers of selling our utility to a foreign company, but the larger holders just wanted a quick, clean profit.
I thought the loss of our gas utility would be front page news in the British Columbian dailies, but when I opened the Times Colonist this morning, I found the article tucked away on an inside page in the Business Section. And how misleading it was.
The Times Colonist wrote, "Shareholders of Terasen Inc. On Tuesday overwhelmingly approved the company's $6.9 billion takeover by U.S. pipeline giant Kinder Morgan. More than 95 percent of them voted for the deal..." That is totally untrue and misleading. It was not 95% of shareholders that voted for the deal, it was a few shareholders who held 95% of the shares who voted for this deal.
I would like the Times Colonist to do another article on this and to give the facts. Also, I would like them to write about some the arguments put forth by the majority of the shareholders who were against this deal.