Canada’s Quebecor Sues Former Cable Boss For Insider Trading

20 September 2002

The wave of corporate scandals that has swept the US appears to have seeped north into Canada, with news that legal action for alleged insider trading has been launched against Claude Chagnon, former ceo of cable-TV firm Videotron.

Videotron and its parent, media and printing giant Quebecor, are suing Chagnon for C$23.2 million ($14.8m; €15m; £9.5m), claiming he accepted 1.2m stock options in the cable-TV company in January 2000 while knowing that telecoms firm Rogers Communications was putting together a takeover bid.

Rogers offered $42 a share for the cable group, compared with the $26 a share at which the options were exercised. Quebecor subsequently won a bidding battle for Videotron, buying the firm in October 2000 for C$5.4bn.

Chagnon denies the allegations, arguing that the shares package had been discussed in late 1999 and approved by the Videotron board before Rogers declared an interest.

Data sourced from: Financial Times; additional content by WARC staff