Palo Alto Concerned Over Canadian Superior’s Shareholders’ Meeting Postponement
|June 7th, 2009||
|On May 28th, in a SEC filing, hedge fund manager Palo Alto Investors expressed its concern over Canadian Superior Energy Inc’s (SNG) decision to postpone its annual shareholders meeting from June 26, 2009 to September 1, 2009. Palo Alto currently owns 15,752,500 shares of SNG, which represent 9.3% of shares out.
Canadian Superior has accused Palo Alto of defamation against Mr. Noval. In a press release, the company says that it is postponing the annual and special meeting of the shareholders “to accommodate its restructuring pursuant to the Companies' Creditors Arrangement Act.”
In response to the postponement, Palo Alto’s Head of Energy Research, David Anderson, commented “The annual general meeting of shareholders is an integral tool to ensure proper governance of any public company. We and other shareholders have expressed significant concern about weak corporate governance at Canadian Superior since September 2008, which led to our decision to requisition a shareholders’ meeting to seek a change in the Board of Directors. The Board’s decision this week to delay the Meeting is a further slap in the face to Canadian Superior shareholders who are being disenfranchised by the Company. Palo Alto believes that the shareholders of Canadian Superior deserve the opportunity to be heard at the earliest possible date and to cast their vote for Directors with the experience necessary to move the Company forward.”
Tensions began to mount between Canadian Superior Energy and Palo Alto following a series of letters between the heads of both companies. Palo Alto’s President Anthony Yun and Chairman William Edwards have expressed disapproval with SNG’s governance. The hedge fund has demanded that SNG and its chairman, Greg Noval, sell its assets in Trinidad & Tobago.
In addition, the hedge fund has mounted a proxy contest to replace SNG’s board of directors with its own nominees in view of the “failings, misconduct, and inadequate corporate governance of the current Board.”
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