Noranda Income Fund Unit T.NIF.UN

Glencore and Directors - 10% of Priority Units Gets 7 Seats

[schocor]

So I was reading the circular last night and I found this gem (page 29 and paraphrased below). 

"If Glencore owns more than 10% of the outstanding Priority UNits, they get to elect 7 directors to the board. If they own LESS than 10% (which is the current case) than 4 of the directors have to be "independant" from Glencore. 

CUrrently Glencore owns 12.5M of the Special units, and own 0% of the ~38M Priority units (you and I own those). 

The point here ,if Glencore has been able to buy 3.8m shares in the open market since the dissident directors announced an elector vote....well then they woudl get ALL 7 directors per the founding arrangement with the fund.

Anybody else see a problem here? Sigh

We need to kick Glencore OUT of this company. It is obvious they they set up the agreement to be able to control/acquire/squeeze shareholders. I dont care if they offer me $2.50 a share. I am not voting for ANY Glencore offer. The final marketing agreement with Glencore wnds in 2025. That gives the new directors a couple of years to arrange new agreements with concentrate suppliers and traders (anybody but Glencore will work fine). 

The management circular is a necessary read.....but watch your blod pressure.