Governance Watch: COLT Telecom Group rings the changes in domicile.

Pensions Week, May, 2006

The COLT Telecom Group extraordinary general meeting (EGM) held on May 30, 2006 involves two issues that shareholders need to decide, but these are being bundled together by the company into a single resolution. The first is a change in domicile of the company and the second is an open offer. We consider it best practice for materially different issues to be put to shareholders in separate resolutions.

The board, which has received financial advice in relation to the scheme of arrangement from Deutsche Bank and Morgan Stanley, considers the scheme and its terms to be in the best interests of COLT and COLT shareholders as a whole. Accordingly, the board unanimously recommends COLT shareholders to vote in favour of the scheme at the EGM and the court meeting, and...

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