June 16, 2010
TORONTO - The Ontario Teachers' Pension Plan supports the Ontario Securities Commission's decision to hold a hearing into the proposed transaction to eliminate Magna International's multiple-voting shares.
As outlined in Teachers' extensive analysis of the proposed transaction, we are of the view that the future impact and long-term implications of this transaction remain unclear, partly due to the many unanswered questions raised by this proposal. We believe the transaction terms are excessive and unfair to holders of the subordinate voting shares and would set a dangerous precedent.
Teachers' is pleased that the OSC will hear these concerns, since this proposal raises significant governance questions about dual-class share structures and the rights of controlling shareholders.
Teachers' intends to be represented at the OSC hearing scheduled for June 23.
Director, Communications and Media Relations
Ontario Teachers' Pension Plan