“Nickel prices have continued to climb and our realized prices so far this quarter are over $6(US) per pound,” Donald Phillips, Inco’s chairman and chief executive officer said.
The expected financial record will be welcome news not only to Inco’s shareholders, but to management as well. At the company’s annual meeting, scheduled for April 19th, Inco’s controversial shareholders rights plan, or poison pill, will come up for attack again. Last year, as part of a recapitalization program which saw more than $1 billion paid out in the form of a special dividend, Inco’s board also received shareholder approval for the rights plan. The plan is a common U.S. practice designed to make any hostile takeover of a company prohibitively expensive.
Allanvest Group, an investment fund, has requested Inco to terminate the shareholders rights plans. The Allenvest proposal is part of the company’s proxy circular and will be subject to a shareholders vote at the meeting.
Inco’s board of directors oppose the Allenvest proposal and are asking shareholders to also vote against the proposal. Inco argues that removal of the protection plan will expose the company to abusive takeover practices.
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