Rogers hits back at ex-CEO Natale, saying he breached contract
, Bloomberg News
Rogers Communications Inc. denied that it owes money to its former chief executive officer and accused him of breaking his contract.
Joe Natale breached his fiduciary duty to the telecommunications firm and “improperly received” more than $15 million (US$11 million) after negotiating a richer severance package that he wasn’t entitled to, the company said in a court filing.
In a lawsuit last month, Natale alleged that the Toronto-based company, which dismissed him as CEO in 2021, still owes him more than $24 million.
Natale, on learning that September that he was about to be ousted, “sought support to significantly enhance his own employment arrangements” and force out Chief Financial Officer Tony Staffieri, who was in line to replace him, Rogers said in a statement of defense and countersuit.
Natale also sweetened the pay agreements of three senior Rogers executives without authority and hid the decision from key board members, the company alleges. Those three executives later renounced any entitlements under the revised deals, the filing said.
Bill Walker, an outside spokesperson representing Natale, said by email: “Mr. Natale denies all of the allegations in RCI’s counterclaim, which is completely without merit. He is confident that the courts will see this tactic for what it is: a transparent attempt to avoid contractual liability and to further disparage Mr. Natale’s excellent reputation.”
The legal spat stems from a dispute that erupted among members of the Rogers clan, which controls Canada’s largest wireless and cable provider. It exposed fissures within one of the country’s wealthiest families, which also owns television and radio stations, Canada’s only Major League Baseball team and a major stake in Toronto’s pro hockey and basketball clubs.
Natale was in charge when Rogers made a $20 billion offer to acquire rival Shaw Communications Inc. in March 2021, but months later Chairman Edward Rogers soured on the CEO and made a play to get rid of him. Edward’s mother, Loretta Rogers, and two of his sisters, Melinda Rogers-Hixon and Martha Rogers, fought back on Natale’s behalf, in alliance with several other board members.
Edward Rogers sued to establish control over the board, drop five independent directors and replace them with his allies.
As part of Tuesday’s legal filing, the company alleges that Natale stalled a request by Edward Rogers for a copy of the shareholder list, which he wanted in preparation for his legal battle to replace board members. “There was no justification for the 16-day delay, other than Natale’s desire to unlawfully enhance his compensation before allowing their release,” the company claims.
Edward Rogers prevailed in court in November 2021 and Natale was gone less than two weeks later, replaced by Staffieri.
Rogers selling $3 billion in bonds to refinance debt
, Bloomberg News
ROGERS COMMUNICATIONS INC-B (RCI/B:CT)
REAL-TIME QUOTE. Prices update every five seconds for TSX-listed stocks
Rogers Communications Inc. priced the largest corporate bond issuance so far this year as the telecom company refinances debt after it completed the acquisition of a smaller rival.
The Toronto-based wireless company sold $3 billion (US$2.2 billion) of investment-grade rated notes in four parts, according to data compiled by Bloomberg. The longest portion of the offering, a 10-year tranche, was priced at the tight end of a range between 232 basis points and 235 basis points over the Canadian government curve, said the person, who asked not to be identified as the details are private.
Rogers agreed to a $6 billion bank facility to help fund its $20 billion deal to acquire Shaw Communications Inc., which was first announced in 2021 and gained approval in March after a legal fight with Canada’s antitrust body.
The transaction garnered investor orders for around three times the size of the bond tranches, according to people familiar with the matter. Demand varied between 48 buyers for the three-year bonds and 77 investors for the 10-year portion.
Read More: Rogers Hires Banks to Refinance Debt After Shaw Acquisition
RBC Capital Markets, Toronto Dominion and Bank of Nova Scotia managed the bond sale, according to Bloomberg-compiled data.
A press officer for Rogers didn’t reply to a request for c
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