Caisse files suit over Inco’s plans

A lawsuit seeking to nullify a proposed shareholders’ rights plan proposed by Inco Ltd.’s (TSE) board of directors has been filed with the Quebec Superior Court.

Issuing the legal challenge to the take-over defence tactic is the Caisse de Depot et Placement du Quebec, which holds about 3% of the nickel giant’s outstanding shares. A court date had yet to be set.

Inco called for a special meeting Dec 9 to allow shareholders to vote on the rights plan or “poison pill” which would tend to slow (but not prevent) a takeover bid by making it overly expensive, and also to vote on a special $10(US) per share dividend.