Nichols decision is legally motivated
Darren Dreger
1/3/2008 7:53:53 PM
Cal Nichols decision to relinquish his position on the Edmonton Oilers board of directors is legally motivated.
Sources say Nichols wants to have the freedom to discuss his reasons for supporting Daryl Katz's offer to buy the team with fellow shareholders. Legally, Nichols can't do that while occupying a spot on the board as it would be considered a conflict of interest.
On Wednesday the Edmonton Investors Group held a meeting to discuss the bid and recommended a rejection of Katz's 188 million dollar offer to purchase the team.
The EIG recently asked Katz for more details on his bid, including whether the Rexall Pharmacy founder would sign an agreement to keep the team in Edmonton and to comment on reports that Katz would be willing to put up $100 million for a new arena.
Sources say the opposed shareholders are merely buying time to see if there is an appetite within to buy out those shareholders most interested in selling.
The belief is there is faction of the board that simply doesn't want Daryl Katz to have the team for a multitude of reasons, including the potential of a strong real estate play that may come with a new facility.
The board is expected to make a formal recommendation on Katz's bid to shareholders on January 21st. Katz's offer expires January 31st.
Katz, an Edmonton native, has unsuccessfully tried to purchase the team several times before.
It's safe to say the politicking of this deal has just begun.
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