Rogers shares slide as battle for control of board deepens
TORONTO, Oct 25 (Reuters) - Shares in Rogers Communications tumbled more than 6% on Monday as a family feud over the control of the board deepened after rival factions claimed they are in charge of one of Canada's largest telecoms companies.
Late on Sunday, former Chairman Edward Rogers issued a statement saying he intends to initiate legal proceedings in the British Columbia Supreme Court to confirm the shareholder resolution that created his reconstituted board.
That comes after the company's board last week voted to remove Edward Rogers, son of late founder Ted Rogers, as chair after he tried to replace CEO Joe Natale with another executive. The move put him at odds with his sisters and mother.
A statement on Sunday from a Rogers Communications spokesperson reiterated Ted Rogers' widow's and two daughters' support for Natale.
While family differences and disagreements at a board level are not uncommon, a public spat is rare in Canadian corporate landscape. It comes as Rogers is in the middle of its biggest-ever takeover, with its C$20 billion ($16.2 billion) bid for smaller rival Shaw Communications, which has attracted the attention of regulators in Canada's highly concentrated telecoms market.
Both sides of the family have said they support the deal.
Rogers' shares fell as much as 6.2% while the broader market was flat. Even before Monday's fall, Rogers' shares were trailing peers. Rogers shares are up 1.3% year to date while those of rivals Telus and BCE Inc have gained 13.8% and 16% respectively. (Reporting by Moira Warburton and Denny Thomas; Editing by Mark Porter)
