Pieces of advice given by proxy advisors aside, the most potentially-damaging intervention in the matter was that of the Ontario Securities Commission (OSC), which said it intends to block the purchase of Frank Stronach's Class B stock and the elimination of the dual share structure, as it is "contrary to the public interest and harmful to the integrity of the Ontario capital markets." The OSC will hold a hearing in the matter on June 23.
In response to that stance, Magna says it hides nothing from its shareholders and the transaction would be effected by way of a court-approved plan of arrangement.
"We strongly believe our existing disclosure is complete, that Magna's board undertook a proper process, and that our shareholders should not be denied the opportunity to decide the outcome of the proposed transaction," Vincent J. Galifi, Magna CFO said in a letter to the OSC.
"Nonetheless, we will work to address the OSC's concerns though we do not believe any additional information we might disclose will change shareholders' views of the value this transaction can unlock for holders of Magna's Class A shares."
In May, Frank Stronach, founder of Magna International, agreed to sell the Class B stock which gave him 66 percent of the voting rights for $863 million in cash and Class A shares.
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