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Court to hear Constellation request

The Ontario Securities Commission in Canada will hear Constellation Brands Inc.’s request for a cease-trading order on Vincor International Inc. stock. The Perinton firm has asked the commission to halt trading on stock as long as a “poison pill,” or shareholders rights plan, is attached.

Court to hear Constellation request

The Ontario Securities Commission in Canada will hear Constellation Brands Inc.’s request for a cease-trading order on Vincor International Inc. stock. The Perinton firm has asked the commission to halt trading on stock as long as a “poison pill,” or shareholders rights plan, is attached.
The hearing is scheduled for Nov. 25.
“Typically, the OSC would set (the shareholders rights plan) aside,” said Mike Martin, Constellation Brands spokesperson. “We’ll just have to wait and see.”
On Sept. 28, following informal talks with Constellation Brands, Vincor’s board adopted a limited shareholders rights plan. It was meant “to ensure that the board will have sufficient time to properly develop and pursue all alternatives that could maximize value for Vincor’s shareholders,” Vincor said in a statement.
Under the plan, for six months only board-permitted, limited trading can occur.
Constellation Brands argues in its application to the OSC that the rights plan is an “improper defensive tactic that warrants a cease trade order as it was adopted as a tactical maneuver intended to frustrate the anticipated takeover bid by Constellation and that it was adopted without approval of the shareholders of Vincor.”
Constellation Brands does not intend to extend its offer in the face of Vincor’s rights plan, the application states. Its offer expires on Nov. 28.

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