My finance view

Patheon Inc. has asked the Ontario Superior Court of Justice to remove the board nominees of New York investment firm JLL Partners Inc. and stop the firm from voting its restricted voting shares acquired under its takeover bid.

"The special committee is taking this step to enforce Patheon’s rights and to continue to defend the best interests of all Patheon shareholders in response to JLL’s inadequate, opportunistic and coercive bid," Paul Currie, chairman of the special committee, said yesterday.

JLL recently extended its offer of $2 (U.S.) per share until June 1 cash loans. Shares in Patheon closed down four cents at $2.71 (Canadian) on the Toronto Stock Exchange yesterday.

JLL said last week it owned about 39 per cent of outstanding restricted shares of Patheon, or up to 57 per cent if it converts 150,000 preferred shares. It has argued its offer is fair and provides an opportunity for Patheon’s shareholders to get out of a thinly traded stock.

The Canadian Press

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