Canada riveted to a real-life ‘Succession’: A family empire’s internal war with billions at stake

TORONTO — It’s a messy household boardroom conflict acceptable for binge watching.

It’s lad against mother, and sisters against brother. There’s 1 of the world’s worst accidental telephone calls. And the soiled laundry of 1 of Canada’s richest families has been aired retired successful tribunal filings and connected Twitter (where else?). Hanging successful the equilibrium is the multibillion-dollar takeover bid of a rival firm.

The slugfest implicit power of Rogers Communications, Canada’s largest wireless carrier, has drawn a big of comparisons: a Shakespearean play afloat of twists and betrayals, a clan-vs.-clan tangle worthy of CBS soap “The Young and the Restless,” and infighting and intrigue akin to the HBO bid “Succession.”

Martha Rogers, 1 of the protagonists of this real-life Canadian saga, has likened it alternatively to different HBO offering: the bloody phantasy bid “Game of Thrones,” with its tyrant kings, wedding massacres and fire-breathing dragons.

On Friday, the Supreme Court of British Columbia weighed successful connected the long-simmering clash that precocious reached a boil, riveting a federation wherever the Rogers sanction and its red-and-white logo is ubiquitous successful immoderate places and specified acrimonious household backstabbing successful the concern satellite seldom plays retired truthful publicly.

Justice Shelley Fitzpatrick granted an bid sought by Edward Rogers, lad of the firm’s precocious founder, Ted Rogers, to regenerate respective of the board’s directors with his ain picks by written solution and without a shareholder meeting, clearing a way for him to instrumentality bid of the board.

Other committee members — including his mother, Loretta Rogers, and sisters Martha Rogers and Melinda Rogers-Hixon — had argued that specified a determination breached some the firm’s rules and Ted’s wishes.

The effect was 2 squabbling factions of directors — each with a antithetic seat — claiming to correspond the $24 cardinal company, which is seeking the takeover of rival Shaw Communications.

The deal, which is pending regulatory approval, could alteration Canada’s telecommunications abstraction and would assistance Rogers grow its footprint successful occidental Canada. The combined steadfast would preside implicit a telecommunications and media empire that includes sports teams specified arsenic the Toronto Blue Jays.

“It’s highly unusual,” said Kai Li, a concern prof astatine the University of British Columbia’s Sauder School of Business. “The household is successful the mediate of a mega acquisition. Typically, it would beryllium the targeted steadfast that implodes. … You would expect that they would beryllium comparatively good behaved.”

Edward said successful a connection Friday that the court’s determination “resolves important governance issues." But it appeared improbable to extremity the drama. Stephen Schachter, a lawyer for Rogers, said the steadfast intended to entreaty the decision.

“We judge that today’s ruling … ushers successful a peculiarly unsafe clip for [Rogers]," Loretta, Martha and Melinda said successful a associated statement. “The institution present faces a precise existent imaginable of absorption upheaval and a prolonged play of uncertainty, astatine possibly the worst imaginable time.”

Edward said successful the connection that his household “has disagreements similar each different household ... I americium hopeful we volition resoluteness those differences privately, arsenic immoderate household would."

The meltdown among Ted’s heirs burst into nationalist presumption past month.

It began down closed doors successful September, erstwhile Edward sought to shingle up the firm’s enactment by concocting a program to regenerate Joe Natale, the main enforcement of Rogers, with Tony Staffieri, past the firm’s main fiscal officer.

In an affidavit, Edward said helium had grown displeased with Natale’s show and harbored doubts astir whether helium could pb Rogers done a $21 cardinal takeover of Shaw, which is viewed arsenic captious for the company’s future.

Natale learned astir the crippled to oust him by accident, aft Staffieri inadvertently dialed his fig (a header successful the Globe and Mail, Canada’s nationalist newspaper, described it arsenic a “butt dial”) astatine an inopportune time: portion Staffieri happened to beryllium chit-chatting distant astir it with idiosyncratic else.

Several members of the board, including Edward’s 82-year-old parent and 2 of his sisters, banded unneurotic to artifact the determination and voted to support Natale astatine the helm of the firm. Rogers announced Sept. 29 that Staffieri had near the company.

The committee past stripped Edward of his rubric arsenic president connected Oct. 21 and the institution announced a replacement.

Edward responded by declaring that helium had unilaterally replaced 5 of the autarkic directors of the 14-member committee with his ain candidates done a written resolution. His caller committee held a meeting, helium said, wherever it reelected him chairman.

A statement “on behalf of Rogers Communications Inc.” said the “former” chairman’s determination was “invalid.”

Or, arsenic Martha enactment it successful a tweet: “I spot Ed has appointed himself the Chairman. LOL. This should beryllium taken arsenic earnestly arsenic if helium appointed himself the King of England.” She has taken to Twitter to opine connected “Ed’s perpetual tantrums,” the Rogers “Old Guard,” and the wider contention swirling astir the steadfast and her family.

The Beaverton, an online Canadian work akin to the Onion, weighed successful with a motion to complaints astir sky-high wireless costs successful Canada: “Rogers hits customers with ‘entertainment tax’ aft chaotic week of firm shenanigans.”

Edward claimed helium had the authorization to marque changes to the constitution of the committee with a changeable of a pen and without a shareholder gathering due to the fact that helium chairs the household spot that controls 97.5 percent of the telecom giant’s people A voting shares. Under the firm’s dual-class stock structure, people B shares person nary voting rights.

Edward said successful an affidavit that his parent had initially supported firing Natale. She has countered that she reversed herself aft she realized she had been fixed inaccurate accusation astir the main executive’s show by her lad and his loyalists.

On Friday, Edward said that Natale would stay main enforcement and has the board’s support.

Li said the saga puts a harsh airy connected mediocre firm governance successful Canada. She said it’s “kind of outrageous” that the people B shareholders person nary voice.

Ted started Rogers, which present boasts immoderate 11 cardinal customers, successful 1960 erstwhile helium purchased the vigor presumption CHFI. His begetter had invented a vigor that ran without batteries. Over the decades, Ted would drawback up respective vigor stations, cablegram channels, magazines and the Toronto Blue Jays, Canada’s sole Major League Baseball club.

Rogers besides holds a involvement successful Maple Leaf Sports and Entertainment, the entity that owns the Toronto Maple Leafs hockey team, the Toronto Raptors hoops squad and the city’s Major League Soccer franchise, Toronto FC. Its sanction is splashed connected respective sports arenas crossed Canada.

Ted died successful 2008. His ceremonial was attended by respective Canadian premier ministers and different titans of concern and authorities successful the country. An obituary successful the Globe and Mail described him arsenic “this country’s mentation of Steve Jobs.” A concern schoolhouse astatine a Toronto assemblage is named aft him.

Speculation astir who would win Ted swirled agelong earlier his death. So far, nary of the firm’s main executives person been household members, but Li said Edward would similar to operate as a benignant of “shadow CEO.”

When Ted enactment his lad Edward successful complaint of the household trust, helium explained to the Globe and Mail that it was important “to person 1 idiosyncratic connected deck, 1 idiosyncratic who’s successful charge.”

“I person each assurance successful him,” helium said successful the 2008 interview. “But if I’m incorrect … they tin marque a alteration to Melinda … oregon whoever.”