Deutsche Bank Canada (Deutsche Bank) has filed an oppression claim against Sherritt International Corporation (Sherritt) in New Brunswick (where Sherritt is incorporated) in connection with steps by Sherritt to institute a quarterly dividend to shareholders.
Deutsche Bank holds convertible debentures issued by Sherritt in 1996 and has engaged in a hedge strategy whereby it buys debentures and concurrently sells short the underlying stock. Deutsche Bank argues that the move by Sherritt will erode their return on their short selling hedge.
Geoffrey Creighton (Corporate), Sheila Block, Jim Tory, and Andrew Bernstein (Litigation) of Torys are acting for Sherritt. Working with Torys as New Brunswick counsel for Sherritt are Bruce Eddy and David Young of McInnes Cooper. Robert Staley, Anne Thomas, Laurel Broten, Lou Moreale and Bruce Barker (Toronto) and John D. MacNeil (Calgary) of Bennett Jones and Ron Slaght of Lenczner Slaght Royce Smith Griffin are acting with Deutsche Bank General Counsel Michele McCarthy for Deutsche Bank. Acting for Deutsche Bank as New Brunswick counsel is Stephen Hutchison of Stewart McKelvy Stirling Scales.