SAULT STE. MARIE, Ontario, Nov. 21 (UPI) -- Steelworkers filed a motion Monday with an Ontario court to block U.S. investors from voting on a new board for Algoma Steel Corp.
The United Steelworkers want the court to stop New York-based hedge fund Paulson & Co., which owns 19 percent of Algoma, from proceeding with a shareholder meeting to vote on its proposal to replace seven of the 11 board members and distribute cash to company owners.
The union is particularly concerned about Paulson's apparent plan to distribute as much as $400 million to shareholders instead of re-investing the monies to upgrade furnaces and better fund pension obligations.
"Raiding cash during good times is short-sighted and counter to the long-term interest of the company," said Steelworker District 6 Director Wayne Fraser.
