Telecom New Zealand has beaten off an attempt by a hedge fund to elect two of its nominated directors elected to the board. Telecom said shareholders have voted to re-elect the current directors, Rod McGeoch and Kevin Roberts. The nominees put forward by Elliott International, Mark Cross and Mark Tume, were not appointed.
The vote was overwhelming, with near absolute votes for the incumbent directors.
Telecom's chairman Wayne Boyd urged shareholders to reject the American hedge fund's nominees. Elliott International owns three percent of the company, and has been campaigning over the fall in the company's share price.
Telecom CEO Paul Reynolds blamed the regulatory structure for the low share price, which hit a 16-year low this week, for the problems the company is facing.
Telecom is moving forward with an operational separation of its landline services, but the hedge fund had pushed for a structural separation of the components.
"We are now fully committed to operational separation in conjunction with our transformation programme, and believe it will deliver the best return for our shareholders." Boyd said, adding "we are making good progress with the transformation of our business. We have already started to execute well and I have the utmost confidence that with your support we are well positioned to make the most of every opportunity in front of us."
Posted to the site on 2nd October 2008
Posted to: www.cellular-news.com/story/33936.php