Boardroom Drama: BMOOctober 11, 2021 | 22:11 ET | 22:11 ET~ Rogers Comm. RCI.B-TSX RCI-NYSE Rating Outperform Price: Oct-8 $59.08 Target ↓ $68.00 Total Rtn 18% Boardroom Drama Bottom Line: The management narrative at Rogers Communications became more intriguing and uncertain over the weekend following revelations by the Globe & Mail. The awkward and abrupt departure of CFO, Tony Staffieri, on September 29th apparently reflects disagreements within the Rogers family regarding senior leadership of the company. We continue to believe the Shaw transaction will close in Q2/22. However, the information most certainly complicates the integration process and the long-term management of the company. We are lowering our one-year target price from $72 to $68 to reflect an elevated risk premium. Key Points The management narrative at Rogers Communications became more intriguing and uncertain over the weekend following revelations in the Globe & Mail. According to several unnamed sources, the awkward and abrupt departure of CFO, Tony Staffieri, on September 29th reflects disagreements within the Rogers family regarding senior leadership of the company. Frustration among directors and family members is understandable. Minority shareholders share similar concerns regarding the performance of the wireless business under Mr. Natale (since 2017) and Staffieri’s (since 2012) tenure. Although there are some differences in how the three incumbent wireless companies report their operating metrics, it is not debatable that Rogers key loading and revenue statistics compare unfavourably to Bell and TELUS. The timing and nature of departure of the CFO is obviously a concern. Meaningful discussions are almost certainly taking place with lending groups and rating agencies. We think the optics of the Chairman of the Board moving against a sitting CEO (and one that he recruited in 2017) while on the