« McEwen, Are you ready to rumble?, Fri., Oct. 20, 2006, 6:46 AM | Main | McEwen's case for Goldcorp shareholder rights, Sat., Oct. 21, 2006, 8:28 AM »

October 20, 2006

Goldcorp vs McEwen: first impressions, Fri., Oct. 20, 2006, 10:18 PM

Except for lunch, I spent most of the day from 9:30am to 5:30pm in a courtroom. Until the judge arrived, I was sitting between Rob McEwen and his lawyer Joe Groia, so the Goldcorp camp knew where my loyalties were. I am on the side of shareholder rights.

Taking in all that happened today, I wish to make two comments tonight, and return on the weekend with my detailed notes.

I have to say that the litigators on both sides were exceptional. Worth every dollar. And, Madam Justice Sarah Pepall, who heard the case, would make anybody proud. Her professionalism matched and perhaps went beyond the fine lawyers trying this case.

In the Stelco hearing under Justice James Farley, I saw shameful, appalling antics every five minutes. I wrote it up as a kangaroo court. In my eyes, it was a disgrace to the Ontario legal system. Today however was exceptionally good, the way I think any of us would want a court hearing conducted.

I have no clue as to how the decision will come down, but I assure you, I won't change my mind on anything I've written here. This was win-win-win.

The other comment is a personal matter.

Now and then in life, there are magic moments. Today I had one.

Just after 4:00 pm, in the heat of the action with the Goldcorp and Glamis legal machine in full-out assault, Rob McEwen who was sitting directly in front of me in the front row, reached over his shoulder to hand me his BlackBerry. I immediately saw it contained a message from Frank Holmes (U.S. Global Investors, which had $200 million in this deal until they realized what was going down) to tell Rob that the Ontario Teachers Pension Fund " a $96 billion capital pool managed on behalf of over 264,000 teachers in this Province of Ontario " had issued a news release calling for a vote by Goldcorp shareholders.

At my side, smiling, was Ermanno Pascutto. Ermanno is the former exec director of the Ontario Securities Commission and vice-chair of the Hong Kong Securities & Futures Commission, and senior counsel to McEwen's lawyers Groia & Co. He said to me: "If we don't win this one, shareholders everywhere are in real trouble."

Amen.

Last week I wrote:

"As an aside, I think that investment bankers everywhere had better beware that Goldcorp represents to them one small company in a huge universe, but the capital market owners and managers they serve is all-important " multi-trillions " and these people make decisions on principle. If you want decisions made based on law and the power of lawyers and a couple judges, then allow it at your peril.

So, what I'm saying is that the buy-side is going to win this one, and I'm going to be there to tell you about it."

Early next week, based on everything I saw today, I think, yes, I'm going to be here to tell you about it. I'll be back to you on the weekend.

In the interim, I'm hoping Ian Telfer rethinks his strategy, and doesn't ask this judge for a decision "early in the week" (her quote). I'm hoping that Ian, who is a fine man, takes this matter to the shareholders.

Posted by Posted by Bill Cara on October 20, 2006 10:18:45 PM | Category: Cara Today in the Market

Discourse

Bravo Bill. Wonderful to have you on the front lines relating what happens in this case.

-Motts

Posted by: mottsmcg [TypeKey Profile Page] at October 22, 2006 12:19 AM [link]

Post a comment

Thanks for signing in, . Now you can comment. (sign out)

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)


Remember me?