andicap
05-06-2010, 10:10 AM
http://www.financialpost.com/news-sectors/technology/story.html?id=2993495
Here's the "fair use" excerpt
Questions about Frank Stronach's future with Magna International Inc. dominated a conference call Thursday morning as the Canadian auto parts manufacturer announced a proposed change in its voting structure that would see Mr. Stronach lose voting control in the company he founded.
The article mentions nothing about the tracks, but I believe they are now largely controlled by MI, the parent company that is giving Frank the boot.
Or perhaps they will let him run the tracks? Maybe the racing trade pubs will shed some light on this angle.
He will have 7.5% of the voting stock. I love the part where they talk about how Stronach "voluntarily" agreed to give up voting control. He had 66% control, so maybe they couldn't force him out, but I believe the Board of Directors could do so if they wanted.
Now usually the guy with voting control appoints the directors so they are loyal to him, but the way Stronach has devastated the company in recent years, perhaps even his backers got fed up and defected.
All just speculation.
Finally, I can't help but wonder if this was the MI's plan all along during those financial machinations over the last year with the bankrupt tracks. Maybe MI's BOD never intended to let Stronach continue to run the tracks thus forcing him to put them under the parent company's aegis before taking away control.
Of course I haven't been following as closely as some others here so I could be wrong on everything.
Here's the "fair use" excerpt
Questions about Frank Stronach's future with Magna International Inc. dominated a conference call Thursday morning as the Canadian auto parts manufacturer announced a proposed change in its voting structure that would see Mr. Stronach lose voting control in the company he founded.
The article mentions nothing about the tracks, but I believe they are now largely controlled by MI, the parent company that is giving Frank the boot.
Or perhaps they will let him run the tracks? Maybe the racing trade pubs will shed some light on this angle.
He will have 7.5% of the voting stock. I love the part where they talk about how Stronach "voluntarily" agreed to give up voting control. He had 66% control, so maybe they couldn't force him out, but I believe the Board of Directors could do so if they wanted.
Now usually the guy with voting control appoints the directors so they are loyal to him, but the way Stronach has devastated the company in recent years, perhaps even his backers got fed up and defected.
All just speculation.
Finally, I can't help but wonder if this was the MI's plan all along during those financial machinations over the last year with the bankrupt tracks. Maybe MI's BOD never intended to let Stronach continue to run the tracks thus forcing him to put them under the parent company's aegis before taking away control.
Of course I haven't been following as closely as some others here so I could be wrong on everything.