(January 28 – 15:35 ET) – Equisure Financial Network Inc. has applied to the Ontario and Alberta Securities Commissions for an order to set aside the shareholder rights plan established by Canada Brokerlink Inc.
On Friday, January 14, 2000 Brokerlink announced that its board of directors had approved a shareholder’s rights plan – or poison pill. Brokerlink indicated that the plan was adopted, in part, in response to a request from Equisure for Brokerlink’s shareholder list and other materials. On Monday, January 17, 2000 Equisure announced that it would offer to purchase all outstanding shares of Brokerlink for $1.02 per share in cash. Equisure’s offer, which was made by a wholly-owned subsidiary of Equisure, was mailed to shareholders of Brokerlink on January 19, 2000.
George Hutchison, Chairman and C.E.O. of Equisure, said, “Unless the shareholder rights plan is set aside or waived by Brokerlink’s board of directors, the effect of Brokerlink’s shareholder rights plan will be to thwart Equisure’s bid. The shareholder rights plan favours the proposed amalgamation of Brokerlink with Vector Intermediaries Inc. over the cash offer by Equisure”.
Equisure has asked the Ontario and Alberta Securities Commissions to hold a hearing with respect to its application sometime as soon as possible.
-IE Staff