Molson Coors urged to revamp stock structure
By Roger Fillion, Rocky Mountain News (Contact)
Originally published 04:51 p.m., May 14, 2008
Updated 04:51 p.m., May 14, 2008
- Email this
- Print this
- Comments
- Change text size
- Subscribe to print edition
- iPod friendly
On the eve of the Molson Coors annual meeting in Denver, two big public pension funds with a $55 million stake in the beer maker called on Molson Coors to scrap its unequal voting-rights structure.
The Florida State Board of Administration and the California State Teachers Retirement System urged Molson Coors Chairman Eric Molson in a letter to begin a recapitalization plan that would establish a single class of common stock.
The letter contended that holders of Molson Coors class B stock “provide more than 95 percent of the equity capital the company relies on” but have very limited voting rights.
By contrast, the letter added, the Class A stock owned by the Molson and Coors families represents less than 5 percent of the equity capital but is entitled to elect almost all the directors.
The two funds said the situation limits investors’ “ability to exercise responsible ownership related to important governance matters.”
They added that the pending joint venture merging the U.S. operations of Molson Coors and SABMiller offers a ripe opportunity for Molson Coors to revamp its shareholder structure to create one class of stock.
Post your comment
Registration is required. Click here to create your free user account, or login below.
Comments are the sole responsibility of the person posting them. You agree not to post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy. Violators may be banned. Click here for our full user agreement.