(Bloomberg) — One of the largest Encana Corp. shareholders says the oil and natural gas producer’s plan to move to the U.S. is “highly discriminatory” against Canadian investors. Letko, Brosseau & Associates Inc., which has a stake of about 4%, will vote against Encana’s plan to relocate to the U.S. and change its name to Ovintiv Inc., the investor said Tuesday in a statement. The Montreal-based firm says the move would force investors holding the shares through indexed Canadian funds or Canadian-only investment policies to sell the stock, often at a loss given where the shares are now trading. “This is an example of very poor corporate governance,” co-founder Peter Letko said in an interview. “The company is openly discriminating against certain types of shareholders.” Encana didn’t consult Letko Brosseau, the driller’s fourth-largest shareholder, before announcing the plan. While Letko declined to say what else his firm may do to oppose the move, he characterized Tuesday’s statement as a “first step.” Representatives of Encana didn’t immediately respond to requests for comment. The move requires the approval of two-thirds of the company’s shareholders. Encana’s announcement of the planned U.S. move last month ratcheted up the gloom enveloping the Canadian oil […]
