"Does this mean that CLF and friends of CLF can effectively vote down the proposed merger ?

CLF holds more than 4% of SPQ.Designed to fail???"

Dissenting rights under CBC Act is not a veto right. It's a right given to shareholders who are not happy with the merger (Hey, JD*, hHeRE's AN ESCApE DOOR FORr YOU!!!) to force a buy-back of their shares, at their 'fair value' (13 cents or so?). KWG/SPQ contractually agreed that they may withdraw the amalgamation process if there are more than 7,5 % of dissenting shareholders regarding the proposed Special Resolution. Which represents 4-5MM$ that SPQ (ie the merged newco) would be obliged to pay to the dissenting shareholders out from treasury. The Agreement clearly states that this condition can be waived, so they can proceed with the merger notwithstanding.

Dissension in the present circumstances would look like an act of bad faith, IMO, since the stock is not halted, and there is a strong market for the shares at this time. Unhappy shareholders just have to sell now to get their money rihght away, instead of asking it from the Corporation, and be paid later, maybe after months of discussions about the 'fair value', and perhaps a remote court ruling...

GLTA.

BaBe.