The board of Rogers Communications Inc has voted to remove Edward Rogers as chairman, the Globe and Mail newspaper reported on Thursday, amid a tussle between the son of late founder Ted Rogers and his sisters and mother over who should lead one of Canada’s biggest telecoms companies.
Rogers Communications top boss Joe Natale said on Thursday he had “unequivocal support” of the board, after Edward Rogers attempted to replace him with the company’s now former chief financial officer in late September.
Natale’s comments were the first since a rare boardroom dispute in Canada’s corporate landscape spilled into the open last month, surprising investors and analysts. The clash comes as Rogers is trying to boost its position in Canada’s highly concentrated telecoms market with a C$20 billion ($16.2 billion) takeover bid for smaller rival Shaw Communications.
The deal is attracting scrutiny from multiple government regulators over whether it will decrease competition.
Natale was talking to analysts after the company’s earnings beat estimates, while revenue matched expectations. He told analysts that Thursday’s board meeting was “a very strong, collaborative and thoughtful discussion with all board members” on the future of the business including the Shaw acquisition.
Chairman Edward Rogers’ unsuccessful bid to replace Natale was opposed by his sister and deputy chair, Melinda Rogers-Hixon, the Globe and Mail newspaper reported last week. Chief Financial Officer Tony Staffieri suddenly exited last month.
In documents released alongside its third-quarter earnings results, the board said it had created a committee comprised of three directors, including Rogers-Hixon, to “establish clear protocols for interactions between the Chair and members of management.”
The board would also undertake a corporate governance review, the document said.
Edward Rogers was trying to replace five of the company’s board members with people loyal to him, Bloomberg News reported on Thursday. Reuters could not immediately reach the chairman for a comment and Rogers Communications did not offer any comment.
“While messy boardroom and family discussions continue to play out in the media, the Q3 results from Rogers show meaningful signs of improvement on many key metrics,” TD Securities analysts said in a post-earnings note.
On Tuesday, Edward Rogers said there was “room for improvement” in the company’s long-term performance following a report that he had held talks with potential candidates to replace board members.
Rogers added 175,000 subscribers who pay a monthly bill as demand rebounded on easing pandemic-led travel restrictions, while wireless service revenue increased 3%.
Total revenue was C$3.67 billion in the three months ended Sept.30, largely in line with an estimate of C$3.68 billion, according to Refinitiv data.
Excluding items, Rogers earned C$1.03 per share, compared with expectations of C$1.02.
Rogers shares fell 1.8% on Thursday, taking their year-to-date gains to 1.6%, compared with a 15.6% rally in BCE Inc and nearly 13.5% gains in Telus Corp.
($1 = 1.2327 Canadian dollars)
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