May 25, 2011 (Canada NewsWire Group) --
TSX Symbol: CIX
TORONTO, May 25, 2011 /CNW/ - CI Financial Corp. ("CI") announced today that Glass, Lewis & Co., a highly regarded proxy advisory service, has issued a report recommending that investors support CI's shareholder protection plan.
The firm's recommendation, released May 24, reverses an earlier recommendation against the Shareholders Rights Plan. Glass, Lewis said it believes "it would be prudent for shareholders to renew the plan."
"We are pleased that Glass, Lewis has recommended that investors support the continuation of CI's shareholder protection plan," said Stephen A. MacPhail, CI President and Chief Executive Officer. "The report points out that the Plan does not prevent the Bank of Nova Scotia or anyone else from making a takeover bid for CI, as long as all shareholders have an opportunity to receive a premium for their shares."
Mr. MacPhail noted that CI shareholders continue to vote overwhelmingly in favour of CI's Shareholder Rights Plan. Currently, approximately 90% of votes cast are in favour of the continuation of the Plan. A number of institutional shareholders have reversed their votes and now support the Plan.
CI's Board of Directors is urging shareholders to vote for the continuation of the shareholder protection plan, which ensures that any change of control transaction is conducted in a manner that is fair and in the best interests of all shareholders.
"We are not opposed to the Bank of Nova Scotia or any other entity making a takeover bid for CI," said Mr. MacPhail. "We have always held the position that any firm, including the bank, is welcome to make a bid for CI at any time and it is up to shareholders to make a decision on the offer. However, we firmly believe that all shareholders should be treated equally. The Shareholder Rights Plan protects CI shareholders from a creeping takeover of control whereby a large shareholder, such as the bank, acquires just enough shares to seize control and implement an agenda favourable to that particular shareholder."
Shareholders may vote by submitting their proxy by May 30 or by attending CI's annual and special meeting of shareholders on June 1 at 11 a.m. at 15 York St., 2nd Floor, Toronto. Shareholders who have already voted and would like to change their vote may submit a new proxy or new voting instructions.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with approximately $99.0 billion in assets as of April 30, 2011. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com/cix.
Stephen A. MacPhail
President and Chief Executive Officer
CI Financial Corp.